S the Federal government comes to terms with large budget deficits, what will be the effect on the American economy?

In reaction to the deficits, should we attempt to sustain the current level of government involvement in the economy through some tax inceases, or should we move towards a reduced governmental role by lowering taxes and/or cutting some Federal programs. If cuts are made, what federal programs might have to be sacrificed? Finally, are we simply making too much out of the deficits, and could this lead to shortsighted government fiscal policies?

Your essay should address the preceding questions by incorporating, in detail, five of the concepts from Economic Concepts opportunity cost, the invisible hand principle, capitalism verus socialism, or good economics verus good politics, laffer curve.