Why are most people econ illiterate?

The general population doesn't understand the role of taxation. Most people assume their tax payments "fund" federal spending, as they do at the state and local level. This also fits neatly into their personal finances as they must "get" money before spending.

The federal government, specifically Congress, however, is the monopoly "issuer" of the currency while all other entities are "users" of the currency. This means that the federal government can never involuntarily fail to pay any obligation denominated in the currency it can create at will.

Because of this, the federal government can "afford" anything that is for sale priced in its currency, even without revenue. It also becomes the price setter for the goods and services it purchases and determines the interest of any bond debt it "chooses" to issue. There is no "free market" in government's spending or borrowing.

Without this knowledge it is assumed that our government is dependent upon us for its funding, either via taxation or borrowing, but neither are funding mechanisms at the federal level. It is we that depend upon federal spending to provide us with the currency needed to pay taxes, or save in the form of Treasury bonds.

This order of operations (one cannot collect or borrow what doesn't yet exist) determines the amount of "money" in the private sector and how much is available to save as a store of value from commerce with our government (deficit).

A "balanced" budget, in spite of being the holy grail of politicians) offers no such savings potential and essentially steals the resources and labor the federal government uses. A proper deficit would provide payment for such resources and labor in the amount needed to support the economy, retire private bank debt in a timely manner, and satisfy the private sector's desire to net save.