The Road to Success

I have always had a great doubt about Barro’s Ricardian Equivalence theorem, basically because of my belief that economic effects have a half-life of 36 months duration; no one will adjust their economic behavior for a longer Time-frame, even though Many try to infer much longer durative effects to the economic decision-making process. I do know assuredly that economic participants seek both Tax Cuts and Government Spending, though the types of such may change by Character and Conviction; I also know that All attempt to forestall higher Taxes within their own Tax payment Time-frame. It all means that unless there is Insistence on a balanced budget, then every Government will Spend until it fails of Credit.

You can follow the previous argument, then read through this argument; a wondrous exploration of Why no one pays any attention to the growth of Debt in the first place. It is not to say that the arguments are not important, especially if you attempt to get through an econ Graduate School. The argument makes a great deal of Taxes being a function of Income, but there is some degree of expectation on my part that the change in Tax revenues flatten to Zero past a certain Income level; this likely because People achieve the Income to influence the Politicians who set the rates. Fear of loss of Income from Tax assessments therefore is relatively low on the Incentive list for Savings or loss of such. The universality of Opposition to Taxation among all Income classes tends to nullify any dependence on Tax adversity in the Decision-Making process.

There is economic argument which has a tremendous amount of relevancy, and much which has considerable less sway. It is important not to confuse the Two, and to apply the appropriate weight to each argument, else one gets swamped by minutia. Always Read with the proximity of consideration to the total impact of forces (Listen to that: I should sell the BS by the lb.), meaning always consider the large and/or small of what you read; considering how much is at Risk by the assessment. Pick not only your own battles, but also your own Wars; wasting your energies only on what will make a difference. Success insists that your efforts are concentrated where they will best apply and alter. lgl