Chronic deficits drastically reduce government's ability to make those infrastructure investments that business needs to grow and create jobs.
Sentiment: NEGATIVE
When the economy is growing, there's a lot that can be done to deal with the deficit.
Economically, long-term joblessness means fewer dollars for consumption. For deficit control, it means fewer taxpayers contributing to government revenues and tens of billions more spent on unemployment insurance.
Traditionally, the way deficits have been cut is you hold expenditures more or less constant in real dollars and then let growth come in to fill it up.
The only way to eliminate the deficit in the long run is through growth.
In order to reduce the deficit, there has to be revenue in addition to cuts.
Government spending is being restrained, the economy is making progress and moving forward, and the pro-growth, tax cutting policies put in place have allowed businesses to grow, which has brought in additional tax revenue to help pay off the debt.
A lot of our fiscal deficit went to fund consumption and really did not get used to build investment and infrastructure. The trouble is, you can get a spurt in GDP growth, which may not be sustainable. I would much rather build the gradient of a long-term marathon.
The best way to deal with the deficit is through economic growth.
Increased spending, growing government debt and overreaching regulations are stifling job creation and economic growth.
As anyone who lived through the 1990s knows, nothing shrinks our deficits faster than a growing economy.