Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Mar 3, 2026 7:59 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
‘Obscene’ Persecution Of Christians Requires Response
Ronald S. Lauder is the president of the World Jewish Congress. He wants his fellow Jews to speak out and stand up against the persecution of Christians, especially at the hands of ISIS. He calls the current situation in Iraq “Nazi-like,” and that the situation has failed to garner attention from political leaders, aging rock stars, and the world in general. He maintains that ISIS is not a loosely organized group of rag-tag jihadists, but …a real military force that...
Customers More Forgiving of Businesses with Religious Affiliation
Whenever I get a craving for a chicken sandwich and waffle fries, it’s invariably on Sunday—the one day a week when Chick-fil-A is closed. Rather than e frustrated by the closure, though, I appreciate that Truett Cathy, the founder of Chick-fil-A, was motivated by his religious beliefs to give his employees a day of rest. It turns out I’m not the only one. “I am from the South and there is pany called Chick-fil-A, and they are known for their...
Why the Looters Will Have the Most Lasting Impact on Ferguson
“They say they want justice for Mike Brown,” says Mumtaz Lalani, an store owner in Ferguson, Missouri, “Is this justice? I don’t understand. What justice is this? Lalani was referring to the looters who, on Saturday, robbed his store and attempted to burn it down. The events in Ferguson are heartbreaking, but they will soon be all-but-forgotten. Within a few weeks the media—and the public’s limited attention—will move on to another story. Within a few months the criminal justice system...
Unlikely Mercenaries In The Fight Against Human Trafficking
A petite woman in pink, in a Filipino red-light district, is picked out by a “tourist” as a possible sex partner for the evening. A pimp panying him tells him she’s not a good choice. She’s a nun. The Mary Queen of Missionaries (MQHM) are a group of Catholic sisters who serve the sex workers in the Philippines. Their order was established solely for this purpose: To seek thestray and fallen away in the person of the victims of prostitution...
Upcoming Event: Common Grace in Business
Mark your calendars! On Friday, October 31, The Acton Institute and Calvin College’s Calvin Center for innovation in Business will present a Symposium on Common Grace in Business. This event will bring members of the faith, academic, and munities together to explore and consider Abraham Kuyper’s works mon grace and how it applies to various business disciplines. It will also celebrate the publication of the Acton Institute’s first translation of Kuyper’s works mon grace into English. It will take place...
Why We Get Stewardship Wrong
Christians frequently talk about “stewardship,” but what do we mean when we use that term? And more importantly, what should we mean by it? At The Gospel Coalition, Stephen J. Grabill,director of programs and international for the Acton Institute, discusses what it means to havea holistic understanding of stewardship and what it means to “make the kingdom of God visible and tangible to the world”: Although Christians across denominational lines often use stewardship language to describe our calling to live...
Acton Institute to Sponsor ‘Faith at Work Summit’
Conversations about “faith-work integration” are alive and well, whether in the church, workplace, or academia, and the Acton Institute continues to offer a variety of resources on the subject, from its growing series of tradition-specific primers to various books and lectures to educational video curricula. In keeping with these efforts, the Acton Institute will be a co-sponsor to the very first Faith @ Work Summit in Boston, MA from October 24-25, where a diverse group of businesspeople, students, pastors, and...
Will A Sharing Economy Be A Growing Economy?
John O. McGinnis, the George C. Dix Professor in Constitutional Law at Northwestern University, says we are in the midst of a sharing economy, and that’s a good thing. (Don’t get all socialist on me; a sharing economy is one driven by service and technology. We are not going to have to pool our food in mune.) McGinnis says this type of economy is good for liberty as well. There are three basic features of a sharing economy: It reduces...
ISIS and Christian Just War Teaching
Christians from a broad range of traditions — from Chaldean Catholics to Southern Baptists — are uniting in a call for military action against mon enemy: ISIS. As Mark Tooley notes, the persecution of religious believers by the Islamic extremists has “reanimated talk about Christian Just War teaching.” Citing the call by Iraq’s Chaldean Patriarch for military intervention, a group of prominent Christian thinkers, with others, has declared that “nothing short of the destruction of ISIS/ISIL as a fighting force...
Borger on FLOW: A ‘Visually Enjoyable’ and ‘Thoughtfully Inspiring’ Series
Over at Capital Commentary, Byron Borger offers some valuable reflections and rather extensive praise for the Acton Institute’s new educational DVD series, For the Life of the World: Letters to the Exiles. “I don’t think I’ve ever seen such a visually enjoyable Christian educational video curriculum,” he writes, “and I know I’ve never seen one so thoughtfully inspiring about a foundational Christian view of creation, culture, social life, and redemption.” Indeed, FLOW offers a peculiar blend of artistic beauty and...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved