Massive intergenerational transfer

Deficit spending is financed by issuing bonds, which are bought by large institutional investors, and repaid thirty years down the line. Interest accumulates each year; at the moment the yearly interest rate on a 30-year treasury bill is 3.67%. It's important to recognize that the money has to come from somewhere; if we spend more now, we'll have to pay for that spending later.

The problem of course is that these bills are going to come due when everyone issuing them is retired. The generation of young people is going to foot the bill, many of whom don't have a vote - try explaining to your 5 year old that everyone just voted on a policy that will decrease the share of his paycheck he can spend when he's hitting middle age.

Perhaps we are doing the right thing by transferring so much money from this generation to the next but I doubt it, given that our generation's taxpayers are just beginning to exercise their vote and the current generation has been able to vote for some time. It makes sense for this generation to vote in selfish politicians who will spend more now at the expense of youth who don't have the franchise.

I'm angry that the government is spending so much more than it's receiving. Because that means a bigger share of my paycheck will go to the government, even if the day itself is far away. Unfortunately, most people of my generation are for increases in government spending; it appears that having to pay taxes makes people more conservative in this regard.

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