... Second, debt financing of wars shifts part of the cost of wars to fu-ture generations, who will have to pay off the government debt. This is argu-ably a fair distribution of the burden, for future ... source of the supply of loanable funds—is composed of private saving and public saving.A change in the government budget deficit represents a change in public savingand, thereby, in the supply of ... beginning of a period of large budgetdeficits that continued not only through Reagan’s time in office but also formany years thereafter. As a result, government debt rose from 26 percent of GDP...