Well Milne is quite correct. The modern world is built on debt, debt is being used to hold up the Dow, to hold Greece et. al together and it has been a prime part of the huge expansion of our home market for the last thirty years.
Of course I do not agree with this Thatcher approach and I feel that most of the pollies either coming from a legal or union background would not have a clue as to the real economics taking place.
Government aiming for a surplus is ridiculous, it is supposed to be a zero sum game, income equals expenditure. Costello and Howard got onto the idea that a surplus is the go and it is b...@#t. Gillard does have the idea that having changed her mind on the carbon issue she cannot do so any more. (as said a few pages back, she has lost the plot) As Milne says, times have changed and people are losing jobs and hurting, it is time to try to stimulate, and having a surplace will not do that at this time.
I think that as the dust settles in a few months Milne will finally prove to be the woman up to the real task of today's tough political scene.
Only time will tell, second guessing rubbish will not.