Our children do not pay for our deficit spending

Politicians and pundits are fond of saying that deficit spending puts a burden on our children (and grandchildren): we obtain benefits that our children pay for. Not true. The government buys a $100 widget by selling a $100 Treasury bond to Sam instead of taxing Joe—deficit spending. Sam dies in 2030 and wills his estate (including the bond) to his son—who immediately cashes in the bond for money to buy a home. The government gets the $100 by taxing Joe's son $100. Has Joe's son ended up paying for today's widget? No. Society received a $100 widget (a social good) today in return for Sam's giving up $100 of consumption (a private good) today. And when the bond is retired, Joe's son gave up $100 of private consumption in 2030 and Sam's son received $100 for private consumption in 2030. A horizontal transfer in 2011 and a compensating horizontal transfer in 2030.