hi doma,
i agree.
my big hope is that the economy can grow its way into surplus. gdp increases. new employment opportunities. increasing house prices yielding stronger household balance sheets and improved consumption.
that, plus tax increases on people with high incomes.
and then reallocation of resources away from health care spending within the economy.
finally, a little bit of inflation to reduce the cost of debt relative to the economy.
it's a long slog, but we're headed in the right direction.
as europe has found, you can't cut your way into balance because cutting government spending also cuts gdp growth. and by more than the savings the cuts generate. or so the recent imf study showed.
| 
