[donquixote99]

The deficit doesn't compete with the private economy for investment when there wasn't going to be private economy investment anyway, because of demand weakness, because the 1% are sitting on all the money. This lack of competition removes pressure on interest rates, a driver of inflation.

There is still the bad effect of growing government interest obligation precluding more useful government spending, and the sharp budget risk to the government if interest rates were to go up.