Peter asked “what if the govt paid all US payroll for a time?” My answer: "it would amount to nationalizing the payroll & would make the govt the Employer of First Resort"
The deficit would be smaller b/c of tax revenue. In WWII deficit peaked at 27% of GDP vs 10% during GFC. It quickly shrunk in both cases as the economy recovered.
But the question is: Should we?
Of course not.