Whether it’s long-term or short-term, proposals to hike the debt ceiling are schemes for allowing the federal government to borrow more money so it can continue to spend beyond its means. Politicians want to borrow more money because they have spending plans that consistently exceed the amount of money that the federal government takes in as taxes, and that are projected to continue to outpace revenues into the foreseeable future. Raising the debt ceiling means snowballing debt rolling downhill right toward our children and their children.
In a Cato Institute paper published in February of this year, Jagadeesh Gokhale of the Social Security Advisory Board warns:
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 expenditureschanges 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.