it’s the index funds values, not the IRA-ness that is at issue. you’ll want to take a look at the Kalecki-Levy profits equation economistwritingeveryday.com/2021/01/19/t... and also graphs like the one in this skeet. bsky.app/profile/varu...

the basic intuition is any sector’s surplus is some other sector’s deficit. profit is the corporate sector’s surplus. it must be built from deficits of the household, government, or foreign sector. 1/

the US foreign sector is in surplus vis-a-vis the US. holding that constant, either households & the government must be in deficit enough to cover both the foreign and corporate sector surplus. 2/

you’d need a huge household debt boom (which would be bad) to support those surpluses if the govt deficit were to substantially decline. 3/

there are other choices: if the US current account deficit substantially declined, the govt deficit could decline while holding stock prices and household indebtedness harmless, for example. but that’s a lot easier said than done. /fin