There is no alternative to deficits currently

[Kurt_and_Hunter]

There is no alternative to deficits currently. Deficits are why we just had a 3.5% GDP quarter. Fiscal austerity would sink us back into the economy of one year ago.

Independents and some Dems don't like government spending but people are somewhat less likely to object to deficits when they see a tangible benefit.

Since cutting the deficit is not an option then at least spend a bunch of money that directly helps people... direct, unmistakable benefits.

And it can be done in a way that is roughly deficit neutral long-term with the only losers being the banks.

Refinance mortgages, even for the 'unworthy' borrowers. They won't be any less worthy with a lower mortgage payment.

Refinance consumer debt. Even for the irresponsible. It's better for them to over-spend at stores than over-spend in interest $$$ to Chase and Citi.

The Fed funds rate is roughly zero while average Americans with average credit are being buried under interest. It is a disgusting situation. In relative terms--relative to the cost of money between banks--I would not be surprised if we are paying the highest interest rates EVER.

[iceman66]

1. Very good ideas.

[uponit7771]

2. Raise the effective tax rate for the 500k earnet back to 74% and give deductions to companies that..

...invest back into the employee base?

[Kurt_and_Hunter]

3. That would harm the economy

Tax cuts for the rich are not ideal stimulus but they are stimulative.

Tax increases for the rich are not as great a drag on the economy as tax increases for the average, but they are a drag on the economy.

In moral terms, sure. Tax 'em all day.

And in economic terms, if someone taxes are going up it should be theirs.

But in economic terms this is probably a poor time for any tax increase.