As I have said in other posts, the fundamental reason for the current economic collapse is the collapse of the middle class.

The fastest way to grow the economy is to increase slightly taxes on the very wealthy and offset those with tax cuts to the middle class. Co inciding with a major infrastructure ans employment push.

Deficit spending that invests  is NOT fiscally negative. Infrastructure investment pays back in growth from 7 to 20 times its cost. This is classic Keynseyan economics. Friedman economics (Monetarism) is opposite but is now wholly discredited.

When Reagan blew up the deficit in the eighties it was done in the worst possible way. VAST increases in defence spending. This produces only short term growth but more importantly vast waste. There was so much money thrown at defence in Reagan years that it sloshed around and led to hyper inflation in the cost plus denfence indistry ($100,000 pliers and spanners I KID YOU NOT!!). The Navy even re commissioned ancient Battleships like the Misouri. These wre strategically useless (used once for bombarding in the first Gulf war but actually less useful than a single multilaunch rocket system that costs about 100,000th of the cost of maintaining the Misouri)

Investing in infrastructure conversely reduces costs to industry for energy and transport (one pothole in a road eats an average of 10 semi trailer axels a year, costs like that mount up)

Finally engaging in a FEDERAL infrastructure re build is super efficient. it allows gas electric and drainage and road rebuilding to be co-ordinated nationally. The benifit to the economy is far greater than the cost of the interest and more importantly all the money borrowed is being spent IN COUNTRY this means that it is not actually going anywhere it is simply moved from one column in a bank ledger to another. Foreign debt need not be used whereas for defence spending foreign debt is needed because most of the companies are mutinational and dont even pay full US tax.

Basically infrastructure spending pays for itself in a few years, middle class tax cuts also stimulate growth by directly creating middle class liquidity. On its own it would simply pay down domestic debt but combined with an integrated employment and ifrastructure policy it is a growth stimulus. The right wing concept of "trickle down" high income tax cuts actually runs into the same problem as the defence spending issue it creates a vast pool of cash sloshing around with nowhere to go hence invested in crazy things like CDS and hedge funds simply becuase without strong unions and refulation there is no incentive to invest in local industry or even service.

Again I suggest reading the Obama agenda at change.gov