Maybe I should have been clearer. If the government is spending more money then they are pulling in in taxes, then how does a cut to government spending translate into money in the pockets of the citizens?
If Spain was pulling in $2-billion in taxes, and spending $4-billion by borrowing the deficit, then how does a reduction in spending down to $2-billion give money back to the people? It stops the bleeding of money into debt, but it doesn't give money back to people to then spend on goods/services.
If Spain was pulling in $2-billion in taxes, and spending $4-billion by borrowing the deficit, then how does a reduction in spending down to $2-billion give money back to the people? It stops the bleeding of money into debt, but it doesn't give money back to people to then spend on goods/services.