Generational warfare

In the last Presidential race, we heard a lot about class warfare. This time, there's a different kind of conflict not too many people have mentioned that should be getting more attention than it gets -- generational warfare. \nDeficits don't matter. That's the wisdom Dick Cheney would pass on in White House meetings on the economy, according to former Secretary of the Treasury, Paul O'Neill, in a new book by called "Price of Loyalty," by journalist Ron Suskind. \nTrue to its words, our government is acting like deficits don't matter. Monday, the president released his plans for next year's budget. To pay the bills this year, the Federal government is borrowing every fourth dollar it spends for a total of $521 billion. This amount could pay the entire annual state budget of Indiana -- 25 times. It's nearly $1,800 for every man, woman and child in the U.S. during this year alone. Next year, the government hopes to whittle the amount borrowed down to a mere $363 billion. By the year 2009, Bush plans to borrow a paltry $237 billion. Each year will add to our growing debt. \nRight about now there are some people who are probably thinking, "Stop your complaining. We've heard this before but we still doing just fine."\nBut we can't borrow forever. So when should we really start to worry? That's what I asked John Mikesell, a professor of government finance and policy analysis at the School of Public and Environmental Affairs. Mikesell explained part of the problem is the lack of a concrete stop sign to prevent future borrowing. \n"There is nothing like a cliff," he explained. "Impacts would almost certainly be gradual -- higher interest rates, declining real investment, declining productivity, reduced improvements in standards of living."\nWhat does that mean for us in the future? It could mean more difficulty finding a job or wages that don't go quite as far, etc. That's what we all have to look forward to. This is all because the more money we borrow now, the more interest we pay. In 2004 the U.S. will pay enough in interest on its loans to finance one and a half wars in Iraq -- $115 billion. What do we get for this handsome sum? Nothing. The larger the debt gets, the more money has to be budgeted \nto buy -- nothing. \nBut what about stimulating the economy? Tax cuts stimulate the economy, right? Borrowing lets people get the benefit right now and pay later. This is pretty sweet for those who are getting the benefit now and pretty sour for those of us who will be asked to pay later and get nothing. As college students, we fall overwhelmingly into the sour category because we don't get much benefit from the tax cuts right now, and we have lots to lose from tax increases in the future. \nIn fairness, this problem is not peculiar to the Republicans. But it is surprising that the party that has always considered itself to be so thrifty would play so fast and loose with the budget. No doubt some of the real conservatives are a bit shocked by the mess. \nAs we head into an election year, it would be nice if college students and other people our age let our baby boomer political leaders know we're paying attention. Hopefully, someday we'll be nicer to our own kids.