After All I've Done For You!

by rrusczyk, Mar 4, 2009, 6:21 PM

If your parents lay that one on you, you might want to point out something along the lines of this. Long story short -- the deficits the government has racked up over the last 5+ years, and will rack up over the next 5+, are essentially a way for your future self to subsidize mom and dad now. That money has to come from somewhere. I know where I'm betting it will come from. Boomers still outvote everyone else -- it's not coming from them!

That said, if mom and dad hooked you up with AoPS, maybe they do deserve that payment from the future you ;)

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This is another good illustration of time preference. In Hoppe's book "Democracy, the God that Failed" he shows how democracies are prone to increasing the time preference of societies. An individual (or monarch) has some incentive to save for their lifespan and even leave an inheritance for their offspring.

A president serving a 4-8 year term has every incentive to provide bread and circuses during his term and pass the bill down to his successors.

Of course there is a way to beat this game. When Europe went socialist in the 20th century many of the best minds and most productive people fled across the ocean. I'm certainly preparing my own sons for the possibility that they may have to head further west to escape to folly and immorality of the American experiment with socialism.

by djcordeiro, Mar 6, 2009, 1:30 AM

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