It's Impossible for Elvis to Hurt Our Kids
Bob is having troubles grasping the point people like me and Landsburg have been making about his OLG model of government debt, as shown by his bad analogy for our argument.
So let's look at another analogy, one with both a factor that plays the role that Bob is saying government debt has in his model, and another factor that plays the role Landsburg and I are claiming government debt has in his model:
It was a dark and stormy night when a driver, in a speeding, 1957, black Chevy, with fuzzy dice hanging from the rearview mirror and a "Elvis Is King" bumpersticker on the rear bumper, ran a red light, killing both an old lady, the Boy Scout helping her across the street, and a chicken.Bob is claiming that (with running the red light = transfer payments, and speeding = government debt), because Landsburg and I think running the red light was the major factor causing these tragic deaths, we are totally (and incorrectly) rejecting any causal role for the speeding. But what we are saying (we, at least in that I have understood Landsburg correctly) is that the government debt is analogous to the "Elvis Is King" bumper sticker: it played no part in the crash at all, and just happened to be along for the ride.
Now, it is one thing to argue that we are incorrect in our analogy: Bob could counter-argue that the debt actually played a causal role we missed, and then demonstrate what that role is. (And now the fuzzy dice and black Chevy reveal their hands: maybe the dice are relevant, because they distracted the driver? Perhaps the dark color is important: the pedestrians could not see the car in the dark? The point being, one has to show that these factors played a role, and not simply point to the fact they existed.)
But to keep arguing that, just because the debt happens to be along for the ride, therefore it is like the speeding, and simply must have a causal role in the story, is to just miss what we are saying.