Based on a purely Keynesian perspective, it is basically impossible to simultaneously reduce the deficit and grow the economy. Keynesian economics argues that the primary tool the government has to control economic growth rates, aside from the prime rate, is deficit spending, IE injection of additional money into the economy. I'm fairly certain from previous discussions that BL is a hardcore Keynesian, so he's going to buy into that basically 100%. I certainly would agree there is some merit to it. As long as it's being spent domestically, government money is still paying somebody's salary or buying somebody equipment. Even if the product of the spending isn't terribly useful or worth the money, it is being injected into the economy somewhere.