Reinflate the bubble has been the approach for the last 16 years as the answer to deflation. Unfortunately the last one got too big. A lot of people made a lot of decisions based on the bubble curve going up and are now reeling now that we're on the other side.
I don't think that working off the excesses is possible. We have grown our population and economy for a certain level of demand and it isn't there. Other countries want to supply any demand that still remains and they want their residents to take demand-related jobs from us.
It is not politically realistic to inflict the level of pain to work off the excesses and it would probably result in a worldwide depression along with any conflicts that would naturally arise. We might go there anyways but no politician is going to not give a try to reduce the pain.