Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Mar 24, 2026 9:46 AM

So … what happened? With regular coverage of the US “Fiscal Cliff” running up to the new year, PowerBlog readers may be wondering where the discussion has gone. While I am by no means the most qualified ment on the matter, I thought a basic summary and critique would be in order:

With six minutes to read this 157 page bill, the US House of Representatives passed it. (Note: either I’m an exceptionally slow reader or none of them could possibly have read it.)According to Matt Mitchell at Neighborhood Effects, the bill ically titled “The American Taxpayer Relief Act,” has three strikes against it:“It ignored the evidence that tax increases are more economically harmful than spending cuts.” The bill puts the Cliff’s spending cuts off for two more months. (I see a sequel in the works: Fiscal Cliff 2: The Reckoning, perhaps?)“It opted to raise revenue through rate increases rather than loophole closings.” Why is this bad? “Put simply, a rate increase has deleterious demand and supply-side effects, whereas a loophole closing only has deleterious demand-side effects.”“It actually expanded corporate tax loopholes!” He continues by adding some valuable substantiation to this claim: “On the last point, don’t miss Vero’s pieces hereand here, Tim Carney’s pieces here and here, Matt Stoller’s piece here, and Brad Plumer’s piece here.” The point: the primary (and likely the only) taxpayers who will see any relief from “The American Taxpayer Relief Act” are crony capitalists.Small businesses, on the other hand, will be hit the hardest by the bill. As Eileen Norcross writes at The Spectacle Blog,

With tax rates raised on those earning over $400,000 some may imagine that only a rarified tier of high earners will be forced to fork over more e to the federal government. However, tax increases in this category also includes [sic] small businesses. These hikes will affect decisions over hiring, expansion, and wages. The e — slower economic growth for all.

In summary, the bill—which the House had only six minutes to read—does almost nothing to address our debt and deficits, and what it does do is mostly negative and/or sub-optimal (unless you’re a crony capitalist, that is). Not only does this bill negatively affect most Americans today, it puts off, yet again, any hard decisions of reigning in our unsustainable spending addiction. We now have two more months before we careen over that cliff, but with how much time Congress had to negotiate an alternative deal before settling for a poorly designed, 157 page bill they only had six minutes to read, I’m not holding my breath.

In general, there seems to be an utter lack of urgency (or even awareness) when es to our duty of intergenerational justice. In fact, all of the urgency is in the other direction: protecting the unsustainable status quo no matter what the costs to future generations. By our reckless expenses we are spending tomorrow’s taxes today. Younger generations are paying in to programs that primarily older generations currently benefit from and, at our current rate, will not be there when younger generations reach the same age, despite any promises being made today.

Thus, wealth is effectively being transferred from the young to the old and at great opportunity cost. As Jordan Ballor wrote in his Spring 2011 editorial in theJournal of Markets & Morality,

[T]he premature restriction of economic opportunity, by the movement of capital from younger generations to older generations, has significant consequences for the course of future economic development. These consequences e even more pronounced when we factor in the reality that younger generations are, at any point in time, typically less wealthy in material terms than older generations. Younger workers have not had as much time in the workplace to earn wages, collect benefits, and save, as those who have been working for decades and are nearing or have already entered retirement. As we learn from what has been called the “miracle pounding interest,” small deductions of available capital at earlier points in time have major consequences for long-term growth.

Too much of our concern has been to try to artificially stimulate the economy now rather than making a true investment in our future. If nothing changes, it is our children and their children who not only will get stuck with the bill but will endure further opportunity costs of deferred savings and investment.

However, while entitlement reform is necessary, it is not sufficient. In addition to the need for entrepreneurship and material wealth creation, the first form of wealth we need to cultivate is spiritual. We need a new moral culture that embraces an everyday asceticism, consistent with traditional Christian spirituality, aimed at responsibility, love, and generosity, beginning in the family and extending through every sector of society. As, again, Jordan Ballor put it in a recent Commentary,

Christians, whose citizenship is ultimately not of this world and whose identity and perspective must likewise be eternal and transcendent, should not let our viewpoints be determined by the tyranny of the short-term.

While cultivating such an ascetic ethos and moral culture is a long term project and requires individual initiative, it is, nevertheless, a reform that does not require us to wait around for Congress and one that can help us stand on our own feet, no matter what cliffs lie ahead.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Video: Rev. Sirico on Sanders at the Vatican
This afternoon, Acton Institute President Rev. Robert A. Sirico joinedhost Neil Cavuto on Fox Business Network’s Cavuto: Coast to Coast to discuss Democratic Presidential Candidate Bernie Sanders’ visit to the Vaticanto participate in a conference examining Pope John Paul II’s 1991 encyclicalCentesimus Annus. You can watch the video below. ...
Is Paying Taxes a Christian Responsibility?
After almost three decades of filling out plex tax forms, you’d think I’d be used to it (or at least resigned to the onerous task). But every tax season plain even more than I did the year before. Why do I have to do this? Perhaps the problem, notes Daniel J. Hurst, is that I’m forgetting that it’s part of my responsibility as a Christian.“While we may have grumbled when filing our taxes this year,” says Hurst, “did we pause...
When Bernie Sanders met Pope Francis
ABC Breaking News | Latest News Videos Well, it finally happened. The pope felt the Bern. Against expectations, Pope Francis and Senator Bernie Sanders, the Democrat candidate for U.S. president, met privately today in the Vatican hotel where thepontiffresides and where Sanders was staying as a guest. Bernie Sanders was in Romefor the Pontifical Academy of Social Sciences meeting to discuss his economic, environmental and moral concerns (as summed up in Sanders’own words during the press scrum that followed). The...
Samuel Gregg: How Bernie Sanders spins a papal encyclical
At The Stream, Acton Institute Research Director Samuel Gregg does a crime scene investigation of Bernie Sanders’ take on Pope John Paul II’s Centesimus Annus encyclical. You might never guess, by listening to the Democrat presidential candidate, that John Paul actually had some positive things to say about the market economy. Gregg says that Sanders’ recent appearance at a Vatican conference “will be seen for what it is: grandstanding by a left-wing populist candidate for the American presidency.” Aside from...
Video: Acton Institute Preview of April 20 Rerum Novarum Conference in Rome
The Acton Institute issued a video statement to the international press today from its Rome office, introducing the main topics that to be addressed at its April 20th Rome conference “Freedom with Justice: Rerum Novarum and the New Things of Our Time” at the Roma-Trevi Conference Center. Among the “new things” to be discussed for the 125th anniversary of Leo’s landmark social encyclical will be the Church and poverty, Europe’s faltering welfare states, globalization’s winners and losers, youth unemployment, our...
Pope’s ‘sad journey’ to Lesbos challenges EU Immigration Policy
Pope Francis’ words to journalistson board the chartedflight yesterday to the Greek island of Lesbos struck an emotional chord:“It is a sad journey,” he said. “We are going to see the greatest humanitarian tragedy after World War II.” As Francis deplaned he was greeted by Greek Prime Minister Alexis Tsipras. The pope expressed his gratitude for Greece’sgenerosity to Middle Eastern refugees, many of e to Europe fleeing from desperate situations. Francis spent only 5 hours on the small Greek island...
Just Render Unto Caesar Already: The IRS and Frivolous Tax Arguments
In an attempt to trap Jesus, some Pharisees and Herodians asked him, “Is it lawful to pay taxes to Caesar, or not? Should we pay them, or should we not?” In response, Jesus said, “Why put me to the test? Bring me a denarius and let me look at it.” And they brought one. And he said to them, “Whose likeness and inscription is this?” They said to him, “Caesar’s.” Jesus said to them, “Render to Caesar the things that...
Should we give smartphones to the homeless?
Across the globe, extreme poverty has been reduced by the advent and ubiquity of a simple tool: cell phones. As USAID says, mobile phones “fundamentally transform the way people in the developing world interact with one another and their governments, and access basic health, education, business and financial services.” Could the same technology that is alleviating extreme poverty around the world also be used to help solve America’s homeless problem? In an intriguing paperby the America Enterprise Institute, Kevin C....
What Bernie Sanders Should Learn While at the Vatican
With the New York presidential primary only a few days away, most candidates are canvassing the state to drum up votes. But Bernie Sanders has taken a peculiar detour —to Rome. (Not Rome, NY. The one in Italy.) Sanders is delivering a 10-minute speech this morning at a Vatican conference hosted by the Pontifical Academy of Social Sciences memorate the 25th anniversary of Saint John Paul II’s encyclical, Centesimus Annus. Sander’s will be speaking oneconomy and social justice. In The...
Video: Rev. Robert Sirico tangles with Sen. Barbara Boxer on Energy, Environment
Video source: The Harry Read Me File. More clips from the hearing here. On Wednesday, the Rev. Robert A. Sirico, co-founder and president of the Acton Institute, testified at a hearing before the Senate Committee on Environment and Public works. The hearing aimed “to examine the role of environmental policies on access to energy and economic opportunity … ” A report at the Energy & Environment news service said the hearing was “full of fireworks.” It was convened by Sen....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved