Tax Cut Law Helps Future Generations
A one-time increase in gross domestic product that generations can enjoy for years to come is not a ‘sugar high’
Borrowing to buy an asset that produces more income than the interest expense makes your children richer. The debt doesn’t make them poorer. Without this basic understanding of finance, deficit hawks can’t distinguish deficit-financed consumption from borrowing that increases the economy’s capacity to pay the interest on the borrowed money, including any resulting increase in the interest rate.
The latter makes future generations richer, as the Republican tax cut law does. The cut also spreads these gains across all income levels. A one-time increase in gross domestic product that generations can enjoy for years to come is not a “sugar high.” Read more here.