Deficit spending puts more money into the economy. We just increased the deficit to over a trillion dollars per year, mainly for tax cuts to the wealthy. Imagine if we instead spent that trillion dollars per year on infrastructure or education.
“suppose the government spends $100 into the economy but only taxes $90 back out. The result is a surplus equal to $10 that shows up somewhere in the non-government part of the economy. In other words, the government’s “red ink” becomes our “black ink.” Their deficits are our financial surpluses.“
So much ink has been spilled for so long on the national debt, it might be nice if that $22 trillion plus on the red side of the US balance sheet just didn’t really matter.