By Donald Boudreaux, includes “Keynesians believe that during recessions lunches really are free. … So who does bear the burden of this debt? Buchanan’s correct answer is this: the taxpayers who repay the debt. These taxpayers, in order to transfer resources to the creditors, are compelled to reduce their consumption when payments on government bonds come due. …Today’s looming fiscal mess is the predictable consequence of politicians’ ability to spend today and to stick our children and grandchildren with the bill.”
Read the full article on: American Institute for Economic Research