okay i get a temporary tax cut i spend it because the debt it creates has a dedicated tax base i ain't in
but the folks in that base make an exact off set reduction in spending ???
why ???
if the interest stream at first is rolled over and the present tax base dies
infinite horizons finite tax payers
what if tax cuts are never spent
what if transfers become transfers become transfers without any real spending ???
"....I know of a pretty simple way to modify the Ricardian Equivalence Theorem so that it does imply Say's Law. All you have to do is assume that government spending, G, is handed out to people as lump-sum transfers (either today or in the future), instead of used to make purchases. With this modification, G just becomes negative taxation. And since taxes in the Ricardian Equivalence model are non-distortionary, government spending would be non-distortionary too. The level of G would not affect output "
we have 15 million missing jobs and that is the calibre of assumption worth volleying about ???
