Borrowing From The Future

Borrowing From The Future

The idea that fiscal deficits mean “borrowing from future generations” is a popular misconception. At an individual level, borrowing is truly borrowing from the future. But at a population level: “Government is borrowing from some people to pay other people, and paying back these debts, should it ever happen, simply reverses that flow. Either way, money is making its way from one group to another at the same point in time”