Follow up Post on "Economists/Intellectuals - Are we hurting our children?"

Recently, I posted an blog entry titled : "Economists/Intellectuals - Are we hurting our children?"

The post argued how programs like - "Cash for Clunkers", "Hiring more Govt Services Staff using borrowed (Stimulus) money leads to inter-generational transfers i.e. in simple terms - burdening our children with debt of our consumption. Interestingly today I read the following articles on Yahoo! Finance

1. Cash for Clunkers under budget with 690,000 sales
2. "Artificially Sweetened" Market Could Face "Seismic Readjustment," Harrison Says
3. It's Hard to Worry About a Deficit 10 Years Out

Correlating the articles - In US, We just bought a many "Corolla’s and other Small Cars", most of them are not even Innovative (potentially clunkers themselves). The subsidy of $3 Billion therefore will only benefit the manufacturer and buyer at the cost of the some "current or future" tax payer and can in no terms be qualified as something that will benefit the future generation, on the other hand Article 2 clearly equates that a lot of current debt accumulation will have to be repaid by our Kids - inherently lowering the standard of living for them and finally the last article argues how each one us or a future taxpayer will pay for this in the form of higher taxes.

I always believed and still do; that my parents strived for better living for me - and I want my kids to think the same of me when they grow up. I am not sure they will, given our generations lack of fiscal control and amount of debt we are piling on to them. Hopefully I am proven wrong.

Your feedback or comments on this post are welcome.

Thanks

Nagesh

The views represented in this blog are my personal views and are not a "reflection of" or "opinions of" any of the institutions I am associated with or have worked for.