Business, Management and Accounting
8 years ago

Deficit policies may harm future wealth despite altruistic human capital investments.

Economic Inquiry
ALTRUISM, DEFICIT POLICIES, AND THE WEALTH OF FUTURE GENERATIONS
William Lord, Peter Rangazas

Paper Summary

The article explores how families pass on wealth through investments in skills rather than money. Despite this, borrowing money now can harm the wealth of future generations. Most people today would support tax cuts funded by borrowing.

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