The problem is macroeconomic illiteracy by policy makers and the press has the economy underperforming. Taxes are to high and spending is to low and policy make

The problem is macroeconomic illiteracy by policy makers and the press has the economy underperforming. Taxes are to high and spending is to low and policy makers believe the government -which can issue infinite amounts of currency- can actually go bankrupt. We can model the macro economy using 3 sectors: foreign , domestic , and government with money changing hands between each sector. Money flows into the gov sector via taxation and out via spending. Money flows out of the domestic via taxation(to government) or spending on foreign and in via government spending or foreign consumption. Foreign is similar to domestic. In order for any sector in aggregate to increase its income, the other sector(s) needs to spend more than its receives from other sectors by either going into debt or spending from savings. Now, with austerity carrying the day in Washington, the private sector cannot increase its aggregate income with money flowing from the government sector. With the foreign sector structured to mostly export to America ( worlds largest consumer) income is not going to flow from there. The only thing left is for the domestic sector to borrow and spend from savings till it all blows up again. After it blows up, automatic stabilizers go into effect ( unemployment, food stamps, stimulus etc , lower taxes due to less income tax revenue) the government picks up the slack and the economy recovers proportional to net government spending. This is the cycle our economy ( if not the world's) operates on. Income guarantee/Job guarantee, lower taxes, and infrastructure programs would serve to proactively increase income to the domestic sector. The political will -due to deficit myths- to do what is required doesn't exist.