Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Apr 20, 2026 4:27 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
Why the ‘Proto-Communism’ of Early Christians Doesn’t Work for Modern Society
“There are solid grounds for believing that the first Christian believers practiced a form munism and usufruct [i.e., the right to enjoy the use and advantages of another’s property short of the destruction or waste of its substance],” wrote Peter Marshall in Demanding the Impossible: A History of Anarchism. As evidence Marshall cites the second chapter of the book of Acts: And all who believed were together and had all things mon. And they were selling their possessions and belongings...
5 Facts About Black Friday
Today is the unofficial first day of the holiday shopping season. Here are five facts you should know about “Black Friday.” 1. The term “Black Friday” was coined by the Philadelphia Police Department’s traffic squad in the 1950s. According to Philadelphia newspaper reporter Joseph P. Barrett, “It was the day that Santa Claus took his chair in the department stores and every kid in the city wanted to see him. It was the first day of the Christmas shopping season.”...
How We Tax the Poor
Imagine you’re a single mom with one child who receives $19,300 a year in government benefits. A local business offers to hire you full-time at an hourly rate of $15 an hour. At 2,000 hours a year (40 hours for 50 weeks) you would earn $30,000. Should you take the job or stay on the government dole? The additional $10,700 a year certainly sounds enticing. But because you would lose your benefits and have to pay taxes, your disposable e...
The Perversion of the Establishment Clause
“Nothing in the Constitution has been so judicially perverted from its original intent as the establishment clause,” says Zack Pruitt in the first entry of this week’s Acton Commentary. “The same clause went from protecting the people from a tyrannical state-run church to punishing those who dare to voluntarily pray on government property.” A football coach in Washington was recently suspended from his duties because he made a habit of praying at midfield following games. Players or students were never...
IRS Back-Door Enforcer of Shareholder Activists’ Agenda
I’m not entirely sure, but it seems a safe bet that Chicago bluesman Willie Dixon wasn’t referring to the Internal Revenue Service when he wrote his classic “Back Door Man.” But, as it turns out, the IRS is serving as a convenient back-door resource for the progressive movement to name and shame donors to causes and organizations opposed by leftist shareholder activists. The IRS is proposing rules that will grant nonprofit organizations the option of disclosing donors of $250 or...
In Dialogue With Laudato Si’: Can Free Markets Help Us Care For Our Common Home?
In his encyclical Laudato Si’, Pope Francis appeals for “a new dialogue about how we are shaping the future of our planet. We need a conversation which includes everyone, since the environmental challenge we are undergoing, and its human roots, concern and affect us all.” (n. 14) The encyclical also calls for “broader proposals” (n. 15), “a variety of proposals” (n.60), greater engagement between religion and science (n. 62) and among the sciences (n. 201), and bringing together scientific-technological language...
How a College Is Partnering with Churches to Boost Employment for the Disabled
Contrary to popularperceptions, people with disabilities are equipped with unique skills and creative capacity, giving them a powerful role to play in the world economy, whether as restauranteurs, goldsmiths, warehouse workers, marine biologists, car washers, or Costco employees. Unfortunately, those gifts are not always recognized by the marketplace. According to the U.S. Department of Labor, the unemployment rate for those with disabilities is more than doublethe average for thosewithout. Thankfully, that blind spot is slowly being revealed, whether by forward-thinking...
Nuns Pose as Prostitutes to Fight Sex Trafficking
It sounds like the plot of a Hollywood production: Nuns dressing up as prostitutes to infiltrate brothels and rescue woman and children from sexual abuse. But the organization of religious sisters called Talitha Kum, which translated from Aramaic means “arise child” (Mark 5:41), is real—and they’re expanding across the globe. Talitha Kum, also known as the International Network of Consecrated Life Against Trafficking in Persons, is a network within the International Union of Superiors General which originates from a project...
Video: Marina Nemat on Finding Faith in an Iranian Prison
On November 19, the Acton Institute was pleased to e Marina Nemat to the Mark Murray Auditorium as part of the 2015 Acton Lecture Series. Marina was born in 1965 in Tehran, Iran, in what was at the time a relatively secular and free nation. (Granted, she lived under the dictatorship of Mohammad RezaPahlavi – the Shah of Iran – but as we were reminded a couple of weeks ago by Jay Nordlinger, when es to dictators you have to...
Black Friday and the Moral Goodness of the Market Economy
“The real question is not does morality inform the market,” says Rev. Gregory Jensen in the second entry of this week’s Acton Commentary, “but whose morality informs the market.” Consumer disapproval of Black Friday has caused a drop in demand. Consequently, retailers have curtailed their investment in these kinds of sale events. If economics is agnostic as to what motivates the change in demand, as a Christian I can’t be. Retailers are responding to the moral cues of shoppers and...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved