The reason that big deficits are bad is they give you less lee way when the shit hits the fan like now. We sailed relatively easily through the GFC because we were actually in credit when it started, thank to Howard and Costello and the Mining boom. At the end of the day the same fundamentals that drive your household budget, drive the national economy. Despite what Economists might try to tell you to the contrary. After all the national economy is fundamentally just the collective of all the budgets; household, business and public sector.
The problem now is there is really no palatable alternative. You need to look to how the US fares because they are a big driver of global demand, and we feed off that demand by supplying the raw materials to the manufacturers etc. The other thing to look for is a change in how business, work etc is going to be done in the future.