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But the Ricardian view of the budget deficit takes a much less negative position on this issue

But the Ricardian view of the budget deficit takes a much less negative position on this issue

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But the Ricardian view of the budget deficit takes a much less negative position on this  issue. Supporters of this view believe that a budget deficit represents trading taxes in  the future for taxes today. That is, if the government spends more than it taxes today,  then it must tax more than it spends tomorrow. Given that the public intrinsically  understands this, a questionable premise, then the public will spend and save  accordingly. Since the public is adjusting its spending and savings schedules to account  for the necessary future increases in taxes, the budget deficit should have little long- term effect on economic growth.  The third position, a bit on the fringe, claims that the budget deficit is not a reasonable  measure of fiscal policy. While these economists do believe that the government can 
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