Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Mar 30, 2026 7:46 PM

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
Commentary: Prophet Jim Wallis and the Ecclesia of Economic Ignorance
Sign up for Acton News & Commentary here. This week, I contributed a piece on Jim Wallis’ new book. +++++++++ This class of the very poor – those who are just on the borders of pauperism or fairly over the borders – is rapidly growing. Wealth is increasing very fast; poverty, even pauperism, is increasing still more rapidly. – Washington Gladden, Applied Christianity (1886) For three decades, we have experienced a social engineered inequality that is really a sin –...
Who’s Polling Whom?
Last night I got a phone call from a polling organization that wanted to ask me some questions about local ing elections and issues.” I listened to the introductory remarks politely but soon found myself persuaded to ask a question. “Where are you calling from?” If you don’t have call blocker, or an answering machine and still pick up your phone from time to time, you likely have listened to “Tina” or “Amy” from a remote area of Bombay or...
Review — Capitalism: A Love Story
The family friendly Movieguide published my review of Michael Moore’s trashing of the market economy, “Capitalism: A Love Story.” Excerpt: Perhaps the most egregious bit of manipulative effort Moore displays in his latest attempt, which by all reports has failed miserably at the box office, is his attempt to use religion, in particular the social teachings of the Catholic Church, to grant an imprimatur to his un-nuanced critique of the business economy. e out of his Catholic closet (who knew...
Religion & Liberty: A Rare and Tenuous Freedom
The new issue of Religion & Liberty, featuring an interview with Nina Shea, is now available online. A February preview of Shea’s interview, which was an exclusive for PowerBlog readers, can be found here. Shea pays tribute to the ten year collapse munism in Eastern Europe, which began in the fall of 1989. The entire issue is dedicated to those who toiled for freedom. Shea is able to make the connection between important events and times in the Cold War...
Extending Europe Eastward
A Polish friend mended this NYT piece by Roger Cohen reflecting on the most recent tragedy visited upon the Polish people. Cohen’s friend, Adam Michnik in Warsaw, “an intellectual imprisoned six times by the former puppet-Soviet Communist rulers,” had said to him in the past that: …my obsession has been that we should have a revolution that does not resemble the French or Russian, but rather the American, in the sense that it be for something, not against something. A...
Acton Media Alert: Rev. Robert A. Sirico and Kishore Jayabalan on the Fifth Anniversary of Benedict XVI’s Election
Acton President Rev. Robert A. Sirico and Kishore Jayabalan, the Director of Acton’s Rome office, joined host Al Kresta on Kresta in the Afternoon on Friday along with another guest to discuss the pontificate of Pope Benedict XVI as the world marks the fifth anniversary of his elevation to the papacy; audio of the segment is available via the audio player below. [audio: ...
Journal of Markets & Morality, Fall 2009: A Legacy of Stewardship
The latest issue of the Journal of Markets & Morality, vol. 12, no. 2 (Fall 2009) is now fully online. In the editorial for this issue, “A Legacy of Stewardship,” I write of the loss in 2009 of two figures of importance for the Acton Institute: “In the unique matrix of vocation that made up their lives, Lester DeKoster and Karen Laub-Novak have each left this world with a legacy of faithful stewardship, and it is to such that this...
Government debt: We’re all in the same (leaky) boat
Edmund Conway, economics editor of The Telegraph, looks at a new analysis of government debt by Dylan Grice of Societe Generale. The charts are eye popping. It’s not just a Greek, or EU problem. It’s also something that Americans e to grips with, and soon. You might call it a moral issue — too long living beyond our means. Conway quotes Grice, and then sums up: “The most chilling similarity between the Greeks and everyone else isn’t in the charts...
Brooks: ‘Spreading the Wealth’ Isn’t Fair
A very good piece on taxation, e inequality and fairness in today’s Wall Street Journal by Arthur C. Brooks, president of the American Enterprise Institute. Brooks, a frequent guest speaker at Acton events, is also author of “The Battle: How the Fight Between Free Enterprise and Big Government Will Shape America’s Future”, ing from Basic Books in June. Watch for the review on the PowerBlog soon. Simple facts about our tax system do not support the contention that it is...
Pope Benedict: Retrieval and Reintegration
Catholic World Report published a roundup mentary on the fifth anniversary of Benedict’s pontificate. I contributed a piece titled Retrieval and Reintegration and was joined by a number of outstanding writers whose work is indexed here. Benedict’s efforts to let the past inform and guide the Church’s future By Father Robert Sirico On March 18, 2005, having been at the Vatican to speak at a memorating the 40th anniversary of Gaudium et Spes, I found myself concelebrating Mass in St....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved