Deadly Innocent Fraud #2:
With government deficits, we are leaving our debt burden to our children.
Collectively, in real terms, there is no such burden possible. Debt or no debt, our children, and us if we are still around, will get to consume whatever they can produce.
There is no big mystery about this. For a start, it is not possible for any generation to send anything to a previous generation. That would mean travelling backwards in time! The next generation will consume whatever is available at the time just like every previous generation has done
For countries like the US and the UK it could mean that the next generation will have a more balanced level of trade with countries like China and Japan. Say the Chinese used some of their $ and £ to buy aircraft or power stations, or whatever they choose to spend their money on, and place contracts in the UK and the US. That would be hailed as good news. Politicians would claim credit for the number of jobs they had created.
If we really are worried about the next generation we’d do whatever it took right now to keep them off the dole queues and give them genuine opportunities in real and meaningful jobs. The older generation will be helping themselves too. That way the economy will be in better shape in 10 or 20 years time and better able to cope with the demands of an ageing population.