Deficits are reduced when we have jobs and credit to pay more in taxes.....Every dollar of government goes to us and goes back to the government in taxes....
Want to reduce deficits? Hire somebody off the unemployment and welfare rolls. Then send everybody a refun check or a loan forgiveness on student loans and something the Republicans forgot and got themselves into this mess....quit enlarging the government with new programs when you get back in charge.
Do I seriously believe this will happen? The Mexicans will declare California a free country first....(About time..)
Robert Reich (The Economic Challenge Ahead: More Jobs and Growth, Not Deficit Reduction)
Under these circumstances, increasing taxes on the middle class (as, for example, Republican legislators and governors are eagerly doing by raising sales taxes, and as the federal government did last month by raising Social Security taxes) makes it even harder for consumers to spend. Which means slower growth and fewer jobs. Likewise, cuts in government spending, such as occurred in the fourth quarter of 2012, cause the economy to contract — as it did in the fourth quarter. In other words, we’re still having the wrong discussion. It shouldn’t be how to cut the budget deficit. It should be how to bring back good jobs and economic growth. Deficit hawks and government-haters are still framing the debate. That bodes ill for all of us.