The Real Problem with Reinhart/Rogoff

The kids are screwed.

The fiscal gap — the present value difference over the infinite horizon — between all projected spending, including servicing official debt, and all projected taxes, is the label-free measure dictated by economic science of the unpaid bills being left to today’s and tomorrow’s children. It’s $222 trillion, based on the Congressional Budget Office’s latest projections. This true measure of our children’s fiscal abyss, which, by the way, grew $11 trillion over the last year, is almost 20 times the size of official debt held by the public!

Those of us in our 50’s might be screwed too. I don’t quite have a strategy figured out on how to deal with this problem.

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