LETTER: The long-term generation game

Mr David Warrick
Friday 07 April 1995 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

From Mr David Warrick

Sir: Hamish McRae ("And shall our children inherit the deficit?" 6 April) expresses the widely held view that a government deficit has to be "paid for" by future generations. This is surely a misconception. A government deficit will require a transfer of funds, within a future generation, from taxpayers to savers/lenders. The future generation of taxpayers will not be paying the current generation of lenders but their descendants in the "future generation".

The only meaningful way in which one generation pays for another is in long-life projects, such as infrastructure or housing, where the earlier generation is paying for the succeeding generation. This is probably the main reason why, in practical terms, most generations are better off than their predecessors, and societies that invest heavily in reasonably useful projects do particularly well.

However, I don't think large deficits are a good idea, because they will be tough on future taxpayers.

Yours etc,

DAVID WARRICK

Cranbrook, Kent

7 April

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in