Economics Crowding Out Questions
The implications of crowding out for future generations are that they may face reduced access to public goods and services, higher taxes, and increased government debt. Crowding out occurs when increased government spending or borrowing leads to higher interest rates, which can crowd out private investment. This can result in a decrease in productivity and economic growth, ultimately impacting the standard of living for future generations. Additionally, the burden of government debt may fall on future generations, leading to higher taxes and potentially limiting their economic opportunities.