That is presumably the meaning of the statement about the "federal government's deepening fiscal difficulties." The New York Times may not like the current level of government spending or deficit, but that is the view of the reporter or the editor. It is not an objective fact that the government has "deepening fiscal difficulties."
In fact, the government can borrow long-term money at far lower cost than at any point in the last 50 years. The financial markets obviously do not agree with the NYT's assessment of the government's fiscal situation.
The most obvious effect of reducing the budget deficit right now would be to raise the unemployment rate, slow economic growth, and lower investment, thereby leaving a less productive economy for our children and grandchildren. While some deficit reduction cults may view this as a positive economic path, there are not many economists who would agree with this position.
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