About that rant …

Third, the national debt is not a net burden on future generations. Even if it gives rise to future tax liabilities (and some of it will), these will be transfers from taxpayers to bond holders. This may have disagreeable distributional consequences. But trying to reduce it now willbe a net burden on future generations: income will be lowered immediately, profits will fall, pension funds will be diminished, investment projects will be canceled or postponed, and houses, hospitals, and schools will not be built. Future generations will be worse off, having been deprived of assets that they might otherwise have had.

One thought on “About that rant …

  1. Sean Hennessey

    Do you have an opinion if they will really cut? Reading Richard Duncan’s books his arguments align with your arguments and drastic cuts now would eviscerate the economy.

    Reply

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