The basic point of generational accounting is that high and rising debt-GDP ratios imply:

Question

Quizplus · Accepted Answer

Generational accounting suggests that high and rising debt-GDP ratios will lead to higher tax rates on future generations to pay off the debt. This is because, as the debt grows, the interest payments on that debt will also grow, requiring more government revenue to pay them off. This means that future generations will bear the burden of paying off the debt through higher tax rates.

The Basic Point of Generational Accounting Is That High and Rising