Reply To: How debt is passed off to future generations


The way I usually explain it to friends is that there are 3 ways the government pays for stuff.

1.) Taxes – paid by today’s workers [Has political limits]
2.) Borrowed debt – paid for by tomorrow’s workers (aka: next generation pays taxes to pay for today’s spending) [has credit limits]
3.) Inflation – paid by the ones who get the created money last (by paying the prices that have reacted to the influx of currency) [The hidden tax – currency viability limit]