Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Apr 6, 2026 4:32 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
A decade of decline for global freedom
A new report shows that global indicators of economic and political freedom declined overall in 2015, with the most serious setbacks in the area of freedom of speech and rule of law. Freedom House, an “independent watchdog organization dedicated to the expansion of freedom and democracy around the world,” released its Freedom in the World 2016 Report which included some disturbing statistics and worldwide trends, particulary as it concerns the progress made by women in some regions. The beginning of...
This is No Time to Panic
Today is the official start of the primary season, which which means it’s also the time when many people officially shift into political panic mode. A lot of usare in a panic, fearing that Western civilization — or at least America’s future — is at stake and that something must be done quickly to avert disaster. But what Americans really need is to to heedthe advice of Greg Forster: Don’t panic. With all due respect to baseball, panicking is America’s...
Where Do Good and Evil Come From?
Where do good and e from? Some possibilities that have been proposed include evolution, reason, conscience, human nature, and utilitarianism. But as Boston College philosopher Peter Kreeft explains in the video below, none of these can be a source of objective morality. So where does e from? “The very existence of morality proves the existence of something beyond nature and beyond man,” says Kreeft. “Just as a design suggests a designer, mands suggest a mander. Moral Laws e from a...
Do you feel a Draft?: Freedom, Virtue, and Military Conscription
LastDecember Defense Secretary Ash Carter announced he would lift the military’s ban on women serving bat, a move that allows hundreds of thousands of women to serve in front-line positions during wartime. “This means that as long as they qualify and meet the standards, women will now be able to contribute to our mission in ways they could not before. They’ll be able to drive tanks, give orders, lead infantry soldiers bat,” Secretary Carter said at a news conference. Today,...
Economic freedom increasing worldwide, but not in U.S.
The Heritage Foundation and Wall Street Journal recently released the 2016 Index of Economic Freedom. Despite modest gains in economic freedom worldwide, Americans have, for the eighth time in a decade, lost economic freedom. The global average score is 60.7, “the highest recorded in the 22-year history of the Index” with more than thirty countries including Burma, Vietnam, Poland, and others, received “their highest-ever Index scores.” 74 countries’ ranks declined, but they improved for 97. The least free countries included...
Lessons of the Flint Water Crisis
“As all the media attention attests, the sad story of Flint is not limited to itself,” says Kishore Jayabalan in this week’s Acton Commentary. “The entitlement mentality is like a drug ruining not just American cities but spreading to the country as a whole. The entitlement mentality is like a drug ruining not just American cities but spreading to the country as a whole.” As a native of Flint, Michigan, I am very saddened by the contaminated water crisis that...
The Goo-Goo Chorus of Silence
George Soros just donated another $6 million to Democratic Party presidential candidate Hillary Clinton’s Super Political Action Committee, raising the total the billionaire has contributed thus far to her 2016 campaign to $7 million. Liberals and progressives who can be counted on to hyperventilate every time the Koch brothers drop a dollar into a Salvation Army drum haven’t made a peep. They’ve also been remarkably silent on other donations to Clinton’s Priorities USA SuperPac, including $5 million from Haim Saban...
What Kuyper Can Teach Us About Trump and the ‘Third Temptation’
Liberty University president Jerry Falwell Jr. recently stirred up a bit of hubbub over his endorsement of Donald Trump, praising the billionaire presidential candidateas a “servant leader” who “lives a life of helping others, as Jesus taught.” For many evangelicals, the disconnect behind such a statement is more than a bit palpable. Thus, the critiques and dissents ensued, pointing mostly to fortable co-opting of Trump’s haphazard political proposals with Christian witness. As Russell Moore put it: Politics driving the gospel...
Federal Government Handed Immigrant Children Over to Human Traffickers
Enticed by the promise that their children could go to school in America, numerous Guatemalan parents paid to have their children smuggled into the U.S. No one knows how many made it across the border, but some of the children were detained by immigration official and transferred to the custody of Health and Human Services (HHS). Once in the hands of the federal government, the children should have been safe. Instead, the HHS gave at least adozen children over to...
5 Facts About the Iowa Caucus
Tonightthe nominating process for the U.S. presidential elections officially begins when voters in Iowa meet for the caucuses. Here are five factsyou should know about what has, since 1972, been the first electoral event of each election season: 1. A caucus is a meeting of supporters or members of a specific political party or movement. To participate in the Iowa Caucus, political supporters show up at a one of the 1,681 precincts (church, school munity center, etc.) at a specific...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved