If we put a trillion into job creation, this drives up the deficit. This is good [View All]

[jtuck004]

because it cheapens the dollar, which makes our exports look better, and helps our manufacturing base.

While it will eventually increase inflation as our debt becomes more expensive, we could eventually manage to bring that back down.

If we lower the deficit we make the dollar stronger, which makes imports (relatively) cheaper, and leads to unemployment, deflation, and a general lowering of living standards.

On top of that, people who owe money, largely the 85% people without the majority of the wealth in this country, get to pay back their fixed debts with cheaper dollars. It lowers the net worth of the 15% of the population that has 85% of the wealth.

Why lower the deficit?