Lexicus
Deity
When the debt is really out of whack for a long time, the spending that interest on the debt crowds out of the budget is the spending that benefits the 90%, not the spending that benefits the 10%. The spending that benefits the 10% is untouchable.
There is no such 'crowding out' unless the political choice is made at the time to crowd it out.
And the 10% are the ones that own nearly all the debt.
I don't think this is actually true. A good amount of the debt is owned by pension funds, for example.
What this means is that the service on the debt is taxed away from the 90%, and given to the 10%. It is a direct transfer from the 90 to the 10. The 90 will have lower consumption so that the 10 can get their payments on the debt.
Again though, even assuming this is exactly correct (it isn't), these are political choices made at the time this spending and taxation takes place. There is no sense in which future generations are "paying for" spending we are doing now.
I will also note that empirical experience seems to disagree with your predictions here. If what you're saying is true, longer-term increases in the national debt should result in longer-term increases in inequality, but that is certainly not the case- the mass prosperity and unprecedented equality of the mid-20th century was in large part created by the massive government indebtedness in the 1930s and 40s (and when FDR briefly attempted to balance the budget in '38 he got a recession in return). The US national debt has increased almost every year since the foundation of the country but inequality has not increased along with it.
Larger point: what you spend on matters, not just that you spend.
And now to tie this all back into the topic of this thread, does anyone have a good sense of what the distributional effects of space program spending are?