When interest rates are this low, deficits have little impact on % rates
We have a huge money supply so % rates will stay low, and we have plenty of commodities and goods, so prices will stay low. The large money supply will permit a lot expansion to take place before things tighten up and rates increase.
A Gov. suplus by defintion will slow the economy down unless it is relased back into the economy because it is out of circulation, shrinking the $ supply. Money out of circulation is dead money. Perhaps that is one of the reasons the recession got going but surprised everyone: it came from an unexpected direction.
The best ways to get it back in circulaiton are to either increase spending or to refund it.
Thanks to the recession and the war over lapping, we have done both.
Bush's clever bet was that this mild recession would be overcome by putting $ back in the hands of those who actually make it and pay a lot of taxes. By not making the tax system more 'prgressive" (how I hate that term for a tax structure that taxes the few so the many can avoid paying)Bush has kept the system much more fair by seeing that more, not fewer pay at least something towards the commonwealth of our country.