The trouble at this moment in history is that irresponsible men who deem themselves exempt from both history and academic influences are dominating the policy discussion regarding America’s fiscal future.

Indeed, it seems possible that the President and Republican leaders will strike a deal at the end of the year to raise taxes and cut spending in order to avert the so-called “fiscal cliff.”

While the fiscal cliff certainly needs to be dealt with, our long-run deficit crisis is diverting attention from the nation’s more serious problem.

And the unfortunate reality is that the U.S. economy still remains deeply depressed from the crisis with catastrophically high unemployment significantly impeding growth. 

Despite grim economic conditions, Republicans want to instill draconian cuts toward entitlement spending, while Democrats, namely President Barack Obama, are calling on the wealthy to pay their fair share in taxes.

But Democrats and Republicans are equally wrong. They are ignoring a fundamental truth embodied in both economic theory and current events: Slashing spending and raising tax rates while our economy remains in a slump is a self-defeating policy — because it just deepens the recession.

If you don’t believe me, look toward the similarly depressed economies of Greece, Spain and Portugal.

The European governments have each responded with austerity, a term for savagely cutting government spending. They argued balancing the budget would instill confidence in the markets, restoring economic prosperity.

The austerity policies proved to be an abject failure, plunging their national economies deeper into depression, further increasing unemployment and virtually eliminating economic growth.

Government spending directly affects economic growth, and a reduction in federal expenditures will consequently lower growth.

Put simply, our income is derived from selling things to one another.

“Your spending is my income, and my income is your spending,” as the Nobel Prize-winning American economist Paul Krugman has declared.

So what will happen if everyone rolls back spending in an effort to pay back debt?

Everyone’s income will decrease.

My income decreases because you’re spending less, and your income decreases because I’m spending less. Overall, our debt troubles become worse, not better.

This should present a central insight for economic policy. When the private sector halts spending in an attempt to pay back debt, the government must actively launch spending initiatives and lower taxes to spur growth and employment.

That said, policymakers in the U.S. urgently need to employ a strong policy of fiscal stimulus. Democrats need to allow for significant decreases in tax rates, including those on the wealthiest individuals.

Republicans need to temporarily subdue their hatred for “big government” and allow for the public sector to increase aggregate demand by engaging in massive expansionary spending programs.

For example, a large-scale rebuilding of our nation’s bridges, roads and water systems would provide a boost to our economic recovery and stimulate job creation.

As previously unemployed individuals begin working, they will spend their wages on goods and services, which will — because of an increase in demand — prompt private industry to start hiring again and take on more workers.  

Yes, both of the above-mentioned fiscal policies would further add to our ever-increasing deficit. Indeed, it will be a temporary price the U.S. will have to pay.

But why not pay the price? The U.S. is in no danger of an imminent debt crisis and even with the extraordinary amount of debt already accumulated, investors continue to buy U.S. bonds, clearly demonstrating that such a crisis will not happen.

To be sure, it is imperative that once our economy recovers and both unemployment and spending are back at their normal levels, we focus on balancing the budget.

However, at the present moment, Congress needs to quit talking about the deficit and start addressing the real problems facing our country.

America’s future well-being will undoubtedly depend on how effectively the government responds to the challenges brought on by the country’s current economic situation.