For those following the neoliberal notion of Ricardian equivalence as interpreted by Barro.
Those with even a rudimentary knowledge of MMT will recognize that Barro's notion of RE cannot be applicable in the current environment even if it is correct as it states it.
Barro: The Ricardian proposition is about the consequences of paying for a given amount of public expenditure in different ways.
Specifically, does it matter—or does it matter a lot—whether the government pays for its spending with current taxes or with current borrowing, which entails higher future taxes?
So, a central part of the proposition is that the amount of public expenditure—today and tomorrow—is being held constant. It's never part of Ricardian equivalence that the level of government expenditure doesn't matter. As [University of Chicago economist] Milton Friedman put it, the costs or benefits of government outlays depend on the amount and nature of what the government spends—there is no free lunch about paying for that spending. So whether you pay for it now or later is secondary.
As a first-order proposition, it is right that it matters little whether you pay for government spending with taxes today or taxes tomorrow...
Read it at Economist''s View
by Mark Thoma
Someone please tell the poor man that taxes don't fund federal spending under the existing monetary system in which the federal government is the monopoly provider of a non-convertible floating rate currency. Better yet, send him a copy of Warren Mosler's The 7 Deadly Innocent Frauds of Economic Policy.