If government spending is paid for by borrowing rather than taxing then eventually the Once Upon A Time There Was A Girl Who Really Loved Pug And Tattoos It Was Vintage Shirt burden has a good chance of building and hurting demand in the future. Better we should be able to tax enough to support government spending. So if we are producing more and there is inadequate income for people and inadequate revenue for the government then that is the problem, not that the production itself is not real.
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