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Memories. In 1961 Labor promised to boost the deficit to fight unemployment. The promise won

  • Written by Warwick Smith, Research economist, University of Melbourne
Memories. In 1961 Labor promised to boost the deficit to fight unemployment. The promise wonArthur Caldwell almost defeated Robert Menzies in the poll in 1961, and won the debate about policy.National Archives, National Library of Australia, Wikimedia

Lately, governments and oppositions have been obsessed with “returning to surplus” in order to balance the budget.

It hasn’t always been so. In the lead-up to the 1961...

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