The federal debt is increasing at an alarming rate, and its burden to
future generations is a legitimate, growing concern. The rhetoric of
both parties acknowledges the
supposed virtue of “paying down the debt”— but, curiously, neither side
has acknowledged an equally valid alternative. In truth, reducing the
federal debt is merely one of two financially legitimate alternatives; not only that, it is the impractical, inferior alternative.
Why is a focus on paying down the debt an inferior way to reduce the debt burden? Mainly because it would require fiscal surpluses — which are not in anybody’s projections (... and they shouldn’t be, for reasons explained in my previous piece on the Balanced Budget Amendment). Let’s face it: our grandkids are destined to inherit double-digit trillions in federal debt from us. But that might not be much of a burden to them at all — if we start paying attention to the right things today.
Read more: http://www.american.com/archive/2013/january/how-to-reduce-the-debt-burden-for-future-generations
Why is a focus on paying down the debt an inferior way to reduce the debt burden? Mainly because it would require fiscal surpluses — which are not in anybody’s projections (... and they shouldn’t be, for reasons explained in my previous piece on the Balanced Budget Amendment). Let’s face it: our grandkids are destined to inherit double-digit trillions in federal debt from us. But that might not be much of a burden to them at all — if we start paying attention to the right things today.
Read more: http://www.american.com/archive/2013/january/how-to-reduce-the-debt-burden-for-future-generations
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