Jim Paulsen on the budget deficit: "laissez faire is taking care of that problem"

[F]or the last four years or more, people have avoided the stock market because of perceived fiscal woes that are overwhelming.  I think laissez faire Adam Smith is taking care of that problem all its own.  We've had deficit-to-GDP ratio that was 10.5% at the end of the '08 recession.  It's now maybe 5.5%.  It's sort of just melting away by about 1% a year, and government really hasn't done that.  It's just been a slow revitalization of economic growth, which is raise tax receipts faster than people appreciated and lower welfare outlays.  And I think that's going to continue.  I wouldn't worry about the deficit so much.

~ Jim Paulsen, Wells Capital Management, as appeared on CNBC (quote starts at 3:13 on video), June 10, 2013