The idea is that people will anticipate that because the government is reducing deficits now, it will have less fiscal problems in the future, and therefore the

The idea is that people will anticipate that because the government is reducing deficits now, it will have less fiscal problems in the future, and therefore the individual will be less likely to be affected by higher taxes in the future or a greater fiscal crisis in the future. The individual doesn't have to deduce this themself. The information could come second or third hand through a variety of channels.