Ricardian Equivalence
The Ricardian equivalence proposition (also known as the Barro–Ricardo equivalence theorem) is an economic theory holding that consumers internalize the government's budget constraint: as a result, the timing of any tax change does not affect their level of spending. Consequently, Ricardian equivalence suggests that it does not matter whether a government finances its spending with debt or a tax increase, because the effect on the total level of demand in the economy is the same.
Read more about Ricardian Equivalence: Introduction, Ricardo and War Bonds, Barro–Ricardo Equivalence, Criticisms, Barro's Response, Empirical Results