Quote:
Originally Posted by sebastian_dangerfield
What would the opposite have achieved? A short term respite from the eventual Big Correction we all know is coming. Any gain in public economic activity would be more than offset with a decrease in private economic activity incurred as a result of increased taxation to pay for the public spending.
Govt spending is inevitably paid for with taxes. This decreases economic activity elsewhere.
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Ricardian equivalence is bullshit.
