Generational Accounting
Categories: Tax, Trusts and Estates
You’re a high-ranking policy person, or HRPP. A president. A senator. A Fed governor. A VP at Shmoop. A celebrity with a Twitter account.
You need to determine how economic policies impact various groups: children, college students, retirees, etc.
But what about people not born yet? That’s where generational accounting comes in.
The term refers to the process of projecting the impact of current policies on future generations. If you want to sell trillions of dollars in bonds to build a giant zipline from the moon to the castle in Disneyland, how much will that debt impact Americans in the 22nd century?
That kind of question falls under the generational accounting sphere.