Do future generations pay for deficits?.
It is the question asked by Tyler Cowen at Marginal Revolution. He considers a number of scenarios, and an intermix of these scenarios. The real problem lies in consideration of present effect in this analysis. It must be studied from the viewpoint of the future generations. What is the image which the future will hold of Us?
We present a sorry spectacle for the future. We raise vast amounts of Debt, with absolutely no consideration of Credit viability loss. Is there an end to the credit We can acquire? Nation after nation on this Earth has failed in the arena of Debt, invariably at the point where Debt Service absorbed too great a portion of the tax revenues. We can accept 10-12% of all Federal tax revenues going to Debt Service, but can We double, or worse triple, such activity? The basic foundation of tax revenues is Taxes, which must be raised to keep Debt Service limits manageable.
A lot of Commentators contend Government Expenditures will decrease in future years, but is this a realistic assumption? When is the last Year that Congress spent less than the Year before? The Answer will really surprise Everyone! Conservatives even imagine We can eradicate Political Pork, probably the greatest Joke in the political spectrum. Fiscal responsibility has to start at some point. lgl