Firstly, Ricardo's equivalence theorem reveals the essence of government borrowing. Public bonds are nothing more than replacing immediate taxes with public future taxes, and consumers' tax obligations have not been eliminated, but have been postponed, that is, public bonds are deferred taxes. Public debt replaces tax, and the tax obligation derived from government expenditure plan is postponed, so consumers may increase their consumption because of the decline of tax present value and the increase of current wealth. Therefore, it is of great significance for the government to analyze the financial effect of national debt instead of tax.

Secondly, Barrow's argument is that every consumer at present and in the future always cares about his own consumption and that of future generations, which raises a question, that is, whether the government must repay the government debt by increasing taxes. If the government can roll over debts by issuing new debts to repay old debts without increasing taxes to repay the principal and interest of public debts, then the current tax burden will not change in the future. The inevitable reduction of consumers' current tax burden will lead to the increase of consumers' disposable income. This leads to an increase in consumer spending.

Third, public debt has become an important means of macro-control by the government in modern society. From the previous analysis, we can know that if the expansion of government expenditure is realized by increasing taxes instead of issuing bonds, then people will reduce their current consumption. However, if the expansion of government expenditure is not obtained through taxes, but maintained through issuing bonds, then at least the public will not reduce the current consumption level. Different forms of government revenue will lead to the adjustment of people's economic behavior, which will have different effects on the macro-economy.

Fourth, the extent to which government bonds affect public consumption expenditure and thus national income level depends on the public's understanding of the relationship between debt and future tax burden. Therefore. The extent to which government bonds are regarded as net wealth by the private sector plays a decisive role in the actual impact of the market-oriented transformation of government bonds. It is based on this principle that when the economy is depressed, the government adopts the practice of issuing bonds instead of increasing taxes, which has an expansionary impact on total demand. Tobin believes: "Debt financing has indeed squeezed out the capital stock to a certain extent. Keynesians and conservative theorists like Buchanan hold this view ... Keynesian fiscal policy can work in the short term. In other words, issuing bonds instead of current taxes will stimulate current consumption; In the case of underemployment, the expansion of real aggregate demand caused by it will increase output and employment.