Sky News host Cory Bernardi says there is a new “thought process” growing in respect to money, particularly when it comes to government debts.

“This idea is called ‘Modern Monetary Theory’ and it suggests that debt doesn’t matter because governments can just keep printing money to buy whatever they want to, as long as they want,” Mr Bernardi said.

“They have to assume that the debt is actually accrued in their home currency, because if it is, they can always just print cash and pay it off”.

“While that is simplistically accurate, it’s also true that the consequences of running the printing presses willy-nilly have devastating economic impacts”.

On Thursday, Treasurer Josh Frydenberg revealed the nation’s budget deficit for the 2020/21 financial year is expected to be $197.7 billion.

“So today, as our government seems relatively happy that the extra debt incurred this year alone is a shade under $200 billion, they also estimate that the national debt is going to be close to $2 trillion … in years to come,” Mr Bernardi said.

“I want to remind you tonight, that debt really does matter.

“Every dollar borrowed today has to be repaid from forward consumption, and that might not affect you, but it will impact your children or your grandchildren.

“That’s because they’ll be paying more to get less, simple because we, collectively, demanded more right now.

“I think that’s rather selfish, and I think that’s morally wrong.

“You know the adage, ‘there is no such thing as a free lunch’, well it’s not much different when it comes to government largesse,” he said.