In 1960, 70-year-olds consumed, on average, about 70 percent of what 40-year-olds consumed. Today they consume about 140 percent!

The US has spent the postwar passing the generational bucket. It has done by borrowing on the books, but primarily off the books. As discussed here, our underfunded official and unofficial obligations to younger generations have reduced US to a position of complete fiscal insolvency. Indeed, we’re now in far worse fiscal shape than is Italy. Yes, Italy’s ratio of official debt to GDP is still higher than that of the US. But its off-the-books liabilities are far smaller as a share of GDP. 

Read more on Economics Matters by Lawrence Kotlikoff.