On Thu, 27 May 2010, Julio Huato wrote:
> A comment posted in Paul Krugman's blog:
>
> http://juliohuato.wordpress.com/2010/05/27/457/
<quote>
A propos http://nyti.ms/a6cHkI: "Are you worried that we are passing
our debt on to future generations?"
No, I'm not! We are also bequeathing them our wealth! (If we don't
destroy it or let it decay with Hooverian economic policies.)
<unquote>
Very true. You could also add: we're bequeathing them our productivity. If productivity grows at 3%/yr, it doubles in 24 years, and quadruples in 48. They can handle a much bigger load and still have more left over.
It's kind of hilarious how when people do this generational algebra they only count the debit side of the ledger; the credit side almost always far outweighs it.
Michael