As Mr. Jefferson said “It is incumbent on every generation to pay its own debts as it goes.” In a letter to a young relative he elaborates: “The generations of men may be considered as bodies or corporations. Each generation has the usufruct of the earth during the period of its continuance. When it ceases to exist, the usufruct passes on to the succeeding generation, free and unincumbered, and so on, successively, from one generation to another forever. We may consider each generation as a distinct nation, with a right, by the will of its majority, to bind themselves, but none to bind the succeeding generation, more than the inhabitants of another country. Or the case may be likened to the ordinary one of a tenant for life, who may hypothecate the land for his debts, during the continuance of his usufruct; but at his death, the reversioner (who is also for life only) receives it exonerated from all burthen.” Mr. Peters’ views are consistent with these words of wisdom from one of the founders of our American Dream. The Dream is in danger for our children and grandchildren because we, our parents and grandparents broke Mr. Jefferson’s trust.

The comments of Mr. Peterson are disingenuous. As long as his taxes were being cut he was wholly unconcerned about “deficits.” Further, talking about “unfunded” mandates is absurd. No society could ever fund either social security or medicare or any other program except on a pay-as-one-goes basis. What we need is an entirely new tax system, one that eliminates all payroll taxes and income taxes, replacing both with a highly progressive VAT, which includes services. Such a tax system would both promote investment and growth and savings.