Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Dec 21, 2025 1:44 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
Verse of the Day
  Romans 5:6-8 In-Context   4 perseverance, character; and character, hope.   5 And hope does not put us to shame, because God's love has been poured out into our hearts through the Holy Spirit, who has been given to us.   6 You see, at just the right time, when we were still powerless, Christ died for the ungodly.   7 Very rarely will...
Verse of the Day
  Romans 2:21-23 In-Context   19 if you are convinced that you are a guide for the blind, a light for those who are in the dark,   20 an instructor of the foolish, a teacher of little children, because you have in the law the embodiment of knowledge and truth-   21 you, then, who teach others, do you not teach yourself? You...
Verse of the Day
  Isaiah 40:28-31 In-Context   26 Lift up your eyes and look to the heavens: Who created all these? He who brings out the starry host one by one and calls forth each of them by name. Because of his great power and mighty strength, not one of them is missing.   27 Why do you complain, Jacob? Why do you say, Israel,...
Verse of the Day
  Commentary on Today's Verse   Commentary on 1 Corinthians 3:16-17   (Read 1 Corinthians 3:16-17)   From other parts of the epistle, it appears that the false teachers among the Corinthians taught unholy doctrines. Such teaching tended to corrupt, to pollute, and destroy the building, which should be kept pure and holy for God. Those who spread loose principles, which render the church...
Verse of the Day
  James 4:1-3 In-Context   1 What causes fights and quarrels among you? Don't they come from your desires that battle within you?   2 You desire but do not have, so you kill. You covet but you cannot get what you want, so you quarrel and fight. You do not have because you do not ask God.   3 When you ask, you...
Verse of the Day
  Romans 2:5-6 In-Context   3 So when you, a mere human being, pass judgment on them and yet do the same things, do you think you will escape God's judgment?   4 Or do you show contempt for the riches of his kindness, forbearance and patience, not realizing that God's kindness is intended to lead you to repentance?   5 But because of...
Verse of the Day
  Isaiah 26:8-9 In-Context   6 Feet trample it down- the feet of the oppressed, the footsteps of the poor.   7 The path of the righteous is level; you, the Upright One, make the way of the righteous smooth.   8 Yes, Lord, walking in the way of your laws,Or judgmentswe wait for you; your name and renown are the desire of our...
Verse of the Day
  Isaiah 45:5-6 In-Context   3 I will give you hidden treasures, riches stored in secret places, so that you may know that I am the Lord, the God of Israel, who summons you by name.   4 For the sake of Jacob my servant, of Israel my chosen, I summon you by name and bestow on you a title of honor, though...
Verse of the Day
  Commentary on Today's Verse   Commentary on Proverbs 5:15-23   (Read Proverbs 5:15-23)   Lawful marriage is a means God has appointed to keep from these destructive vices. But we are not properly united, except as we attend to God's word, seeking his direction and blessing, and acting with affection. Ever remember, that though secret sins may escape the eyes of our fellow-creatures,...
Verse of the Day
  Commentary on Today's Verse   Commentary on Acts 20:17-27   (Read Acts 20:17-27)   The elders knew that Paul was no designing, self-seeking man. Those who would in any office serve the Lord acceptably, and profitably to others, must do it with humility. He was a plain preacher, one that spoke his message so as to be understood. He was a powerful preacher;...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved