These deficits continue to add to the Federal debt, which is now greater than $17 trillion. While older Americans have reaped the rewards of deficit spending, young workers will be saddled with the cost of this debt for years to come. In order to pay off this debt, the government will either have to increase taxes or debase the currency (or both). Either way, this will have a serious negative impact on future economic growth.
Solutions to reduce the budget deficit require actual spending to decrease in real time. An ideal solution would simply reduce spending, starting with cutting waste. If a political agreement must be met that pairs spending cuts with spending increases, the cuts must exceed the increases. The spending cuts must also precede the increases, to prevent a future Congress from reversing such an agreement. Until these measures are put into place, Washington will continue its budget gimmicks, while young workers will be saddled with trillions more in debt.