This is a point which is apparently either not accepted or ignored by both Republicans and Democrats in the debate – deficits are eliminated by jobs. Therefor, macroeconomic expansion is fiscally responsible. And cut-backs, even those endorsed by the Democrats, may very well extend the recession, reduce revenues, and maybe even aggravate the deficit – which will of course lead to more proposals for cuts…
But it’s counter-intuitive, at least to American values-based economics.
This Kos post elaborates to some extent.
Meanwhile, even though the Democrats have essentially caved on cutback numbers, it appears we’re headed for a government shut down over Republican riders involving abortion and the EPA. David Kurtz asks, “Is it really about the deficit?“