Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Mar 25, 2026 10:18 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
Critiquing Fair Trade and Dead Aid
Cardus’ Robert Joustra rightly pillories “fair trade” along with the logic of foreign aid in a challenging article, “Fair Trade and Dead Aid: ‘My Voice Can’t Compete with an Electric Guitar.'” Joustra’s point of departure is sound: “The aid model is not working, and no large-scale cash infusion or debt forgiveness scheme is going to make it suddenly start working. The fair trade brand is too small-scale and ultimately regressive.” Unfortunately, though, Joustra’s well-placed critique of the fair trade movement...
‘Mr. Gorbachev, tear down this wall!’
Today marks the twentieth anniversary of the fall of the Berlin Wall. Acton adjunct scholar and sometime PowerBlog contributor Eric Schansberg links to a bit of background to Ronald Reagan’s remarks at the Brandenburg Gate provided by Anthony Dolan, Reagan’s head speechwriter, in today’s WSJ. Peter Robinson is credited with the famous utterance, “Mr. Gorbachev, tear down this wall!” In his remarks at this year’s Acton Institute Annual Dinner, Rev. Robert A. Sirico recalled that President Reagan’s challenge was derided...
What is a Christian to think about health care?
Brad Green, who teaches theology at Union University in Jackson, Tenn., published mentary on health care in The Jackson Sun. Green, an alum of Acton’s Toward a Free and Virtuous Society program, is also a co-founder of Augustine School in Jackson. So, what would Jesus do? Jesus would (and mand people to repent of their sins, care for the poor, the sick, the lame and the down-trodden. And Christians manded to do the same. But is a Christian then obligated...
The fall of the Berlin Wall: Reminiscence and reflection
Excerpts from remarks delivered at the Acton Institute annual dinner in Grand Rapids, Mich., on Oct. 29, 2009: Twenty years ago today, a growing tide of men and women in Eastern Europe and northern Asia were shaking off the miasma that had led so many to imagine that central economic planning could work. The socialist regimes of Eastern and Central Europe—accepted as ontological realities whose existence could not be questioned—were, well, being questioned. On November 4th, 1989, a million anti-Communist...
The Market, School of Virtue
This week’s Acton Commentary: Does the market inspire people to greater practical virtue, or does it eviscerate what little virtue any of us have? Far from draining moral goodness out of us—as many think—the free market serves as a “school of the practical virtues.” Rather than elevating greed and self-sufficiency, the market fosters interdependence and cooperation. Its rewards do not go to those who are the most isolated, self-absorbed, or cut off from society, but to those who sustain mutually...
Machiavelli, the Prince, and the Tradition of Liberty
Machiavelli’s succinct and semi-diabolical advice to the prince is one of the most enduring works of political philosophy in the world. This man, writing in a time roughly contemporaneous with the Reformation, was less concerned with seeking the will of God than with winning at all costs. I wrote about him in my book The End of Secularism. He is famous for advising the prince that it is important to appear honest, humane, religious, faithful, and charitable, but that it...
Dems Cornered on Health Reform
As we appear to be nearing a climax in the many-months-long health care reform debate (maybe), opinion is remarkably divided on what the end result will be. Outright victory for left-wing reformers? Passage of a watered down, mon-denominator reform bill? Or clear victory for Republican opposition? All possibilities remain on the table. The relative success of conservative candidates in major elections Tuesday led mentators to reason that the environment has gotten more difficult for moderate Democrats and that, therefore, Pelosi...
Finding the Right Charity
The Dave Ramsey Show appears on Fox Business Network and is also available for live streaming via Hulu. In last Thursday’s episode (at about the 18:00 mark), a Twitter follower of @ramseyshow asked, “I want to start giving. How do I find the right charity for me and how do I find out if the charity is legit?” Dave’s short answer: “You have to spend time on it.” He expands a bit, but that’s a great starting point. You need...
Recommended Post-Reformation Day Reading
In connection with the worldwide celebrations of the quincentenary of John Calvin’s birth in 2009, the Acton Institute BookShoppe recently made available a limited stock of the hard-to-find Light for the City: Calvin’s Preaching, Source of Life and Liberty (Eerdmans, 2004). In this brief and accessible work, Lester DeKoster examines the interaction between the Word proclaimed and the development of Western civilization. “Preached from off the pulpits for which the Church is divinely made and sustained, God’s biblical Word takes...
Earned Success = Happiness
David Bahnsen reflects on last night’s annual dinner: (Acton’s) co-founder, Father Sirico, is a friend and patriot. He is a scholar in Catholic social thought, and perhaps as good of an orator as I have ever heard. He and I shared the podium at an event I did in Newport Beach earlier in the year. Fortunately for me, I spoke before him that evening! The talk tonight was challenging and inspiring. He reminded us that the greatest victim in this...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved