The future generation is here, and the central bank is taxing them

Why deficits matter as much as ever

During normal times, most people grasp what economists call “opportunity cost.” If the government spends money, someone will eventually have to pay the price through higher taxes. During deep recessions, however, there is sometimes a mistaken perception that the old rules no longer apply, and that money can be freely spent without imposing a burden on future generations. Let’s not fall into that trap.

It is certainly true that in periods such as the Great Depression, the Great Recession and, yes, today, the cost of government borrowing is much lower than usual — even close to zero. But these debts will persist, and when interest rates eventually increase, the burden on future taxpayers will also begin to rise.

Too late. I do not think we have had normal years since 1999. Now we got antificants.