The heart of the matter is the way public debt allows the current generation of voters to live at the expense of those as yet too young to vote or as yet unborn. In this regard, the statistics commonly cited as government debt are themselves deeply misleading, for they encompass only the sums owed by governments in the form of bonds.People usually say that they love their children and their grandchildren, and yet the "greatest generation" created and next generation expanded a system that can only be seen as robbing the future to pay for today's party. Social Security goes to everyone, regardless of need. So poor youngsters pay into a system that writes checks to rich oldsters. A system that will go bankrupt long before any of them can hope to collect.
But the official debts in the form of bonds do not include the often far larger unfunded liabilities of welfare schemes like – to give the biggest American programmes – Medicare, Medicaid and Social Security.
Monday, June 25, 2012
The Telegraph has an interesting article on public debt. Interesting because you don't often see this in print. Reith Lecture: 'We’re mortgaging the future of the younger generation' - Telegraph