Youth to Foot Bill for Baby Boomer Budget Incompetency

Young adults must become engaged in politics or risk living in poverty. “Borrowing rates are historically low,” explains Jessica Irvine for the Sydney Morning Herald. “But eventually the books should balance, and when they do, they will do so on the shoulders of future generations who will pay higher taxes than otherwise.” Her objections to rising debt and increased costs for education, housing and other benefits focus on Australia but also apply to other places like the United States and Europe. For Australia, John Daley of the Grattan Institute calculates that the households under age 65 contribute up to $5,000 each to government while households over 65 cost about $32,000. The system is not sustainable – especially when investments are slashed for education, health care and infrastructure. Young citizens have little choice but to cope with substandard services and prepare for expanding debt. Irvine points to an inter-generationally corrupt system of budgeting, and Daly describes budget deficits as a tax on the young. Without reforms, societies will confront rising inequality and destabilization. – YaleGlobal

Youth to Foot Bill for Baby Boomer Budget Incompetency

Governments favor today over tomorrow, and budget deficits – and failure to invest in education and infrastructure – are a tax on the young
Jessica Irvine
Friday, July 1, 2016

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Read about government debt to GDP.

Jessica Irvine has been writing about economics for Fairfax since 2005, including a two-year stint in the Canberra Press Gallery. She has an honours degree in Economics (Social Sciences) from the University of Sydney. Her first book is  Zombies, Bananas and Why There Are No Economists in Heaven: The Economics of Real Life.