Home
/
RELIGION & LIBERTY ONLINE
/
The Fiscal Cliff Deal and Intergenerational Justice
The Fiscal Cliff Deal and Intergenerational Justice
Mar 24, 2026 4:20 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
A ‘house of cards’ in Nicaragua
“When Nicaragua is in the news, it is usually bad news,” says Paul J. Bonicelli in this week’s Acton Commentary, “and so it is once again as it descends into another dynastic dictatorship.” The man currently building the latest family-run state is the incumbent president Daniel Ortega, although apparently the irony is lost on him since he led a socialist revolution 40 years ago to overthrow the previous dynasty. The history of Nicaragua is a cycle that runs from dictatorship...
Explainer: What you should know about the American Solidarity Party platform
Note: This is the thirdin a series examining the positions of several minorparty and independent presidential candidates onissues covered by the Acton Institute. A previous series covered the Democratic Party platform (see here and here) and the Republican Party Platform (see here and here). Although minor parties —often called “third parties” to distinguish them from the dominant two — have always been a part of American politics, the dissatisfaction with the Republican and Democratic parties in the current election season...
John Locke: ‘Father of Liberalism’
On this day in 1632, one of the greatest champions of liberty and someone often referred to as the “Father of Liberalism,” John Locke, was born. Although Locke’s philosophy played a crucial role in the American founding, there is still much that we can learn from his writings today. Here are 5 things to remember about Locke on his birthday: Locke offered one of the first and most recognized theories of private property. To this day, many still refer to...
‘A higher freedom’: David Brooks on restoring the moral imagination
We continue toseethe expansion of freedom and the economic prosperity around the world. And yet, despite having enjoyed such freedom and its fruitsfor centuries, the West isstuck in a crisis of moral imagination. For all of its blessings, modernity has led many of us to fort andprosperity with a secular, naturalistic ethos, relishing in our own strength and designs and trusting in the power of reason to drive our ethics. The result is a uniquely moralistic moral vacuum, a “liberal...
What Christians can learn from Adam Smith’s ‘paradox of value’
In a new video from TED Ed, Akshita Agarwal provides a quick lesson on Adam Smith’s “paradox of value” and the differences between “value in use” and “value in exchange.” For Christians, there’s a crucial lesson here about the best way to meet humanneeds in the economic order,whether throughtrade policy, reducing price controls,orany number of other areas.Discerning “economic value” is a tricky thing, andfree economies are a handy tools for working through these thingsinpeaceful and productive ways. But as Agarwal...
Explainer: What you should know about welfare reform
This month marks the 20th anniversary of welfare reform, a bipartisan measure that made important changes to our country’s welfare system. Here is what you should know about this milestone legislation. What was “welfare reform”? Welfare reform is the nickname given to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). This 251-page federal law was introduced by Rep. E. Clay Shaw, Jr. (R-FL) in June 1996 as part of the Republican Contract with America and signed into...
The doom delusion: overcoming pessimism in a prosperous age
Global poverty is on the decline. Technological progress is pacingat break-neck speed. Freedom and opportunity are spreading across the world.And yetour political classes and popular masses continue to preach of impending doom. Why do we haveso muchpessimism in an age of such pronouncedprosperity? In a splendidessayfor The Spectatoron the “doom delusion,” Johan Norberg argues that, on the whole, there is actually great cause for optimism. Writing in a vein similar to thinkers such as Matt RidleyandDeirdre McCloskey, Norberg reminds us...
Does the Catholic Church oppose the free market?
Modern Catholic social teaching has been articulated, as the U.S. Conference of Catholic Bishops notes, through a tradition of papal, conciliar, and episcopal documents. These documents developed a number of themes related to economic and social policy, such as the option for the poor and vulnerable and the dignity of work and the rights of workers. Because of this focus, Catholic social teaching on economics is often associated with the political left. But is that a fair assessment? James Baresel...
Is Jesus’ parable of the workers about minimum wage laws?
There is an old preachers’ tale of a young man who turned to the Bible for guidance on making decisions. Using the text as a divining rod, he would flip through Scripture and let his finger land on a verse, using the result as a divine insight into how he should decide. One day while wondering what to do with his life, he flipped his Bible open and pointed to Matthew 27:5. He read, “[Judas] went and hanged himself.” He...
Colleges don’t need ‘trigger warnings’ — and neither do Christian students
In the early 1930s a student organization at the University of Chicago invited William Z. Foster, the Communist Party’s candidate for President, to give a lecture on campus. Not surprisingly, the event sparked outrage and criticism, both at the school and around the country. In response the school’s president, Robert M. Hutchins said, “our students . . . should have freedom to discuss any problem that presents itself” and said the “cure” for ideas we oppose “lies through open discussion...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved