I'm not sure a deflation is good for us.
It's obvious to the economic world. That's the reason BOJ keeps buying Japanese stocks and bonds (to keep asset prices high when others have stopped buying) and Japanese people have stopped investing in Nikkei (because holding cash == increasing value)
That's also the reason Japan (notoriously closed society) is admitting defeat and letting in immigrants to work.
Your comment also doesn’t link the deficit to the deflation, only speculates on the effects of and policy response to that deflation.
You need to understand the sequence of events in Japan. They had a massive debt problem (national, local and corporate). That triggered a recession causing asset prices to drop. The caused deflation.
The only way to not have asset prices drop and some inflation was printing money. So they printed. Their population and economic investment dropped further while they kept printing money (two opposite pulls). This kept them going until today. It's a wonder they didn't hyperinflate. They pulled it off. But the expense of this is no GDP growth. Infact, whatever GDP growth they have is because of BOJ selling assets to BOJ who sells assets to BOJ. It's a mirage.
So, yeah, their real economic activity (thus, investments, wages, innovation) has dropped from zero to negative because for the average individual, holding money = gold!
McConnell is demanding that the Democrats work with Republicans to cut entitlement programs.
Even though they control all three branches and are the ones who passed the very expensive tax cuts.
Aside from cultural issues like abortion the Republican agenda seems so far removed from what their constitancy needs it's hard to fathom.
The next time Democrats are in control you'll be sure to see GOP complaints that the defecit is a problem and entitlements should be on the chopping block.
They are actually doing that right now, even though they created the massive deficit increase.
That's because to them, entitlements are the problem, and the deficit is just the standard excuse.
The real question would be "inflation adjusted per-capita tax receipts over time" but a mid-work googling didn't turn up anything promising; that being said from the above graph _and_ the knowledge that inflation is increasing, your statement doesn't seem to mesh. Feel free to point out if I was really thick and got the wrong data or something.
This is a false equivalence because the government and the private sector spend money on very different things. If the tax cuts end up being funded by reductions in entitlement spending, for example, the private sector won't funnel money into Social Security and Medicare to offset those reductions.
>If the Republicans are right, they'll spur enough economic growth to be a net gain across the board in both new economic activity (wealth)
CBO projections imply that the nearly all of the long-term gains from the tax cuts will flow to foreign investors [0], so it certainly won't be a net gain for the US as a whole.
[0] https://www.brookings.edu/blog/up-front/2018/05/10/cbo-estim...
Voodoo Economics