Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Mar 16, 2026 3:29 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
The Wickedness Of Global-Warming Alarmism
Creation and the Heart of Man by Fr. Michael Butler and Andrew Morriss Is global warming irrational? Is it bad science? Yes, to both says Nigel Lawson, a member of the U.K. House of Lords and chairman of the Global Warming Policy Foundation. However, Lawson takes it one step further; he calls global-warming alarmism “wicked.” In a lengthy piece at National Review Online, Lawson first details being threatened by those who insist on the “facts” of global-warming. However, he insists...
Explainer: Boko Haram and the Kidnapped Christian Girls
What is going on with the mass kidnappings of children in Nigeria? During the night of April 16, dozens of armed men from the terrorist group Boko Haram captured over 300 Christian girls aged 12 to 15 who were sleeping in dormitories at Chibok Government Girls Secondary School in northeast Nigeria. About 50 students managed to escape, but 276 were still being held according to Nigerian state police. The group has since captured 8 more girls. The kidnappers took the...
Now Available: ‘On Exchange and Usury’ by Thomas Cajetan
Christian’s Library Press has released a new translation of two treatises on exchange and usury by Thomas Cajetan (1469-1534), a Dominican theologian, philosopher, and cardinal. Although best known for mentaries on the Summa of Thomas Aquinas, Cajetan also wrote dozens of other works, including short treatises on socioeconomic problems. Published under the name On Exchange and Usury, these treatises reflect on the banking industry of the early modern era in the context of the Church’s usury doctrine, examining which transactions...
The Bible and the Principle of Moral Proximity
“The Bible does say a lot of justice and the poor,” notes Kevin DeYoung, “but if we are to be convicted and motivated by truth, we must pay more careful attention to what the Bible actually does and does not say.” An example is a concept that DeYoung says can be derived from the Bible, the principle of moral proximity: The principle is pretty straightforward, but it is often overlooked: the closer the moral proximity of the poor the greater...
Chinese Government Destroys Church; Denies Persecution
Wenzhou, China, is known as the “Jerusalem of the East” because of its large Christian population, a population that had, until recently, enjoyed the Sanjiang Church for worship. A massive structure, Sanjiang Church took over 12 years to build and was a site of pilgrimage for Chinese Catholics. Last week, however, the Chinese government (which had previously lauded the structure’s architecture) deemed the structure “illegal” and destroyed the entire building, bricking off massive statues to hide them from sight. The...
Explainer: The Supreme Court’s Ruling on Government Prayer
What was the Greece vs. Galloway case about? The short answer: The constitutionality of saying religiously specific prayers (e.g., praying in Jesus name) at government meetings and functions. The (slightly) longer answer: In the town of Greece, located in upstate New York, the Town Board sessions were opened by a prayer from local clergy, mostly leaders of Christian congregations although in a few instances members of other faith traditions offered the invocation (a Jewish man, a Baha’i leader, and a...
Amnesty International: Release Nigerian Schoolgirls But Legalize Prostitution
Yesterday, Joe Carter wrote about Boko Haram, the terrorist group that has kidnapped hundreds of girls in Nigeria from the Christian school, and is now threatening to sell them into the sex trafficking trade. Salil Shetty, Secretary General of the human rights organization Amnesty International, is calling upon the Nigerian government to initiate a transparent investigation of the girls’ kidnapping and an immediate release of the girls. The horrific abduction shows the serious nature of violations of international humanitarian and...
‘Destitute And Dying:’ A Human Trafficking Survivor’s Story
Rani Hong was a very young girl in rural India when her life was snatched away from her by human trafficking. In desperation, her mother allowed her to be taken away by a woman she thought she could trust, a woman who promised to care for Rami. And she did, for a while. However, the lure of money was too great and Rami was sold into human trafficking at age seven. I was taken to an area where I did...
Is Mass Incarceration the New Eugenics?
“Has the War on Drugs revived the 19th Century progressive crusade against ‘degenerates’?” asks Anthony Bradley in the second of this week’s Acton Commentary. The United States currently has over 2.3 million prisoners incarcerated in federal, state, and local jails around the country. According to an April report by the Sentencing Project, that number presents a 500 percent increase in incarcerations over the past 40 years. This increase produces “prison overcrowding and fiscal burdens on states to modate a rapidly...
Poverty, Justice, and Christian Love
“We have replaced charity with humanitarianism, says Michael Matheson Miller in the first of this week’s Acton Commentary, “a hollowed-out secular and materialist vision of Christian love.” Concern for the poor is at the heart of Christianity. Saint John Paul II called poverty one of the greatest moral challenges of our time, and to ignore the plight of the poor has consequences for our eternal souls. Pope Francis addressed poverty in Evangelii Gaudium: “Almost without being aware of it, we...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved