BUS202 Applied Macroeconomics Essay: Australian Debt and Economy

This essay analyzes the Australian economy, addressing the reasons for its slowdown in 2018-19, including drought, housing downturn, and the US-China trade war. It compares Australia's government debt to other developed countries, highlighting its relatively low levels. The essay explores whether the Australian government should take on more debt, considering the benefits of low-interest rates for infrastructure spending and economic stabilization. It also presents a counter-argument, suggesting that raising taxes could be an alternative tool to manage government debt and stimulate the economy, especially considering the aging population and increasing healthcare and pension expenditures. The essay uses statistical information and references to support its arguments, providing a comprehensive overview of the macroeconomic issues facing Australia.