Spending Beyond Our Means: How We Are Bankrupting Future Generations
By Jagadeesh Gokhale
February 13, 2013
Current U.S. fiscal policy, including the recently concluded “fiscal cliff” debt deal, is placing an enormous financial burden on today’s children and on future generations in order to deliver government benefits to current middle-aged workers and their elders. Standard government accounting methods hide that intergenerational transfer from the public and make it difficult to calculate how large the transfer is. Intergenerational resource transfers will grow larger as the composition of budget receipts and expenditures changes with relatively faster growth of age- and gender-related social insurance programs. Intergenerational redistributions through federal government operations could substantially affect different generations’ economic expectations and choices and exert powerful long-term effects on economic outcomes.