Are you sure you want to delete this post?
Stephanie Kelton puts the infrastructure deficit above $2 trillion dollars.
I agree that we need more gov't spending for public purpose.
Given the size of the output gap, FICA tax relief is just a start of what we need to get to full employment/full output.
But if Republicans want to cut gov't spending, when there is no excess demand or demand side inflation problem, then if they don't implement tax cuts of larger proportion (because some of the tax cut will be saved, but gov't expenditures are all spent by definition), all they have done is shift part of the 'burden' of government from the real resource side to the tax liability side of the private sector, and with no public purpose to show for it at all. That's Big Government, by their own definition, and for the hell of it. So either they don't understand how the monetary system works or they are subversives. Either way, the balance budget myths that they espouse are the greatest threat to the American economy we've ever faced. It's like this: if I am the issuer of the currency, but don't know it, and I behave like I am a price taking participant in the market, who like everybody else must acquire the funds to spend before I can spend, I am going to end up taxing the rest of the economy to death and blowing up the deficit the ugly way (recessions). So they may not like that taxes "drive" the acceptance of the currency by the nongovernment, but it's not about what they like, it's about what they are actually doing and how the system actually works. And right now, they are bleeding off the consumers in the economy for no reasonable public purpose, and this is across the board at all levels of government.
Taxes are too high and the gov't deficit is too low per the given amount of government spending + private credit expansion.
"I don't worry about numbers on pieces of paper. I worry about jobs!" -George W. Bush in the spring of 2003 when asked about the deficit.