Yet people will overborrow, prefering purchases that are levereged -- why? Because it is the established habit, and that habit has not yet been broken. Thus tax cuts will increase public debt, and the result? A number of possible scenarios. Probably most still bad news.
A few of things might work, though. And include tax cuts -- not because tax cuts as tax cuts, but as a change of the ratio of incremented government debt to private debt, under the assumption that the public leverages less of a spent dollar than the government. Might make owned preferred stock, regular dividend stock in PRIVATE companies a better hedge against deflation than government bonds, and thus redirect captital flow to the *hopefully* more efficient private engine. I says hopefully because accountability and general expectations accountability (theose two are different things) must be there at every level to make the private stock a better hedge than a T-Bill.
Other things that would help are import tariffs on labor and goods. Labor? -- H1B, etc. Incentives for starting new corporate businesses (not adding to the dinosaurs) in manufacturing and transport stateside. All to help capital flowing more in the States.
The last thing we need is tariffs. Tariffs are one of the things that contributed to the Great Depression. If the government would have stepped back and allowed the market to adjust instead of passing Smoot-Hawley, instituting wage and price controls/supports, and increasing taxes, the depression would have been deep and probably painful but also of a shorter duration.
I agree cutting taxes would help; it's the only thing the government can do any more. The ability to cut spending, like it should, is not an option after LBJ put about 70% of the budget in the non-discretionary category. If you look back to Harding and the depression of 20-21 (I think), he cut taxes AND the budget 25%. Depression was over in about 12 months.