Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Apr 13, 2026 7:58 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
The Spirit of Nationalism
The spirit of nationalism is a positive thing in my view. Most people inherently love their country. Christians should not be alarmed by this very normal human emotion. I shared in it by observing the Fourth of July parade in munity. As the band played and the fire trucks blared their sirens I found myself feeling a sense of pride about munity and my country. I watched the politicians go by, seeking recognition and votes, and thought to myself, “Elections...
Balmer’s Partisan Polemics
Noted evangelical scholar Randall Balmer castigates the religious right in a recent piece in the Chronicle of Higher Education. The critique, in my view, amounts to little more than a slightly more sophisticated version of Jim Wallis. The criticisms leveled by Balmer and Wallis are the same ones made by leftist enemies of the religious right for decades; the difference is that Balmer and Wallis are evangelicals themselves and, therefore, their critiques are “internal” and, for some, pelling. I happen...
Because It’s Worth Rereading….
Happy Independence Day, everyone: IN CONGRESS, JULY 4, 1776 The unanimous Declaration of the thirteen united States of America When in the Course of human events it es necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they...
The Digital Ad Fontes!
The Drexel University Libraries have posted video and audio from the Scholarly Communications Symposium convened earlier this year. The event, held on April 28, 2006, included a presentation by me, “The Digital Ad Fontes!: Scholarly Research Trends in the Humanities,” as well as Rosalind Reid, “Access, Inertia, and Innovation: Turbulent Times in Scientific Publishing” (Dr. Blaise Cronin was ill and unable to attend). The video is divided into two parts and is archived in the streaming content library (scroll down...
Technology and Globalization Transform a Town
Read about Racine, Wisconsin in the New York Times, “On Lake Michigan, a Global Village,” by Steve Lohr. Gary Becker is mayor of Racine, and according to the article, “Racine’s future, Mr. Becker believes, lies in forging stronger links with the regional economy and global markets. Reinvention can be unnerving, he acknowledges, but he says it is his hometown’s best shot at prosperity and progress.” “In the past, Racine was a self-contained economy,” Becker said. “But that is not an...
How Green Were the Nazis?
A new review on H-German by John Alexander Williams of Bradley University examines the edited collection of essays, How Green Were the Nazis? Nature, Environment, and Nation in the Third Reich (Athens, OH: Ohio University Press, 2005). The volume’s editors contend in part that “the green policies of the Nazis were more than a mere episode or aberration in environmental history at large. They point to larger meanings and demonstrate with brutal clarity that conservationism and environmentalism are not and...
Prayer for Independence Day
Lord God Almighty, in whose Name the founders of this country won liberty for themselves and for us, and lit the torch of freedom for nations then unborn: Grant that we and all the people of this land may have grace to maintain our liberties in righteousness and peace; through Jesus Christ our Lord, who lives and reigns with you and the Holy Spirit, one God, for ever and ever. Amen. –U.S. Book of Common Prayer, “Independence Day,” (1979), p....
NBER on Globalization and Poverty
From the abstract of a new paper from the NBER, “Globalization and Poverty,” by Ann Harrison: “This essay surveys the evidence on the linkages between globalization and poverty. I focus on two measures of globalization: trade and international capital flows…. The collected evidence suggests that globalization produces both winners and losers among the poor. The fact that some poor individuals are made worse off by trade or financial integration underscores the need for carefully targeted safety nets.” ...
Estonia and Centesimus Annus: A Universal Message of Hope
Dr. Mart Laar, former prime minister of Estonia, discusses the relevance for the papal encyclical Centesimus Annus for Europe today. “The message of Centesimus Annus is not a message of left or right. It is a universal message of hope. We can see these same ideas in most groups working on the future of Europe. The only problem is in finding political leaders ready to implement them in reality,” he writes. Read Dr. Mart Laar’s mentary here. ...
Don Bosch: Best of the Blogs
Acton PowerBlog contributor Don Bosch (aka The Evangelical Ecologist) had his post, “Guilt Free Ecology,” picked up and recognized by the Pittsburgh Tribune-Review in their feature “Best of the Blogs,” on June 18. Good job, Don! ...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved