... 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 ... 1990s.Source: U.S. Department of Treasury; U.S.Department of Commerce; and T. S. Berry,“Production and Population since 1789,”Bostwick Paper No. 6, Richmond, 1988.574 PART NINE THE REAL ECONOMY ... debate centered on the effects of these deficits both on the al-location of the economy’s scarce resources and on long-term economic growth.Loanable Funds(in billions of dollars)0InterestRate5%6%$1,200...