That doesn't make sense. Cutting the deficit would reduce demand.
Not among those who want less deficit.
If there was less deficit availaible, and people who wanted to buy deficit would find it more expensive, and the increased price of deficit would drive down demand, leading to an escalating effect that would reduce the demand for deficit to a newer, and lower equlibrium than can then be reduced by another forced deficit reduction.
See how easy it is?
Since the economy is driven by consumer demand, not money stolen or borrewed by the government, reducing the deficit will grow the economy.
Money paid in interest is money wasted. The Obama deficits are so gigantic that soon have the national GDP will be consumed by paying the interest. And money wasted paying deficit interest is money not paying for "infrastructure", or, more importanly, not money the private citizen can use for his own private purposes.
And earning money to spend for their own private purposes is the reason normal people work.
Which would reduce taxes.
No.
Cutting spending reduces government outlays (by definition) which reduces the need for taxation (by definition).
Cutting tax rates, on the other hand, puts more money in the hands of people actually producing things with that money, (unlike government), and leads them to increase their income, which, by the way, increases the revenues the government realizes.
What is important is increasing government revenues, right? Hmmm?
Taxation isn't supposed to be about punishing people with more money than you do, right? Hmmmm?
So... top marginal income tax rates should be SLASHED.
That capital gains tax? Shouldn't exist. Capital is invested and moved to create more capital, which is used to finance businesses and create jobs. This economy isn't going to grow in any significant way until taxes are cut.
Massive spending isn't going to do it. The Messiah's first year and a half in office has proved this conclusively.
Which would then reduce our capacity to pay down the massive debt as well as fund our $57+ Trillion in unfunded liabilities. Furthermore, cutting spending would stall if not stop the recovery resulting in more job losses and even less demand and revenue. You don't build stable credit on job losses and low tax revenue. But that's exactly what you are arguing for.
No. You don't build a stable nation on job losses and punitive taxes. So the nation should stop wasting time and money on failed Keynesian policies that have never worked.
And the unfunded liabilities is more like 100+ trillion. If the government doesn't get out of the way and allow the private sector to grow again, that hundred trillion dollar debt is going to become a quarter quadrillion dollar debt, and it's going to be paid by the government running it's magical money machines in the basement of the Treasury.
Austerity measures like the ones Germany is calling for will ensure low if any growth. And if you're against higher taxes, there's no way we can reduce our deficit and debt which will then lead to poor credit ratings.
Your argument does not gel with your goal.
My goal is freedom.
Government programs are slavery.
My argument makes perfect economic sense and it's consistent with my goal.