Austerity is wisdom in surplus and folly in downturn, but unfortunately, it appears we mere mortals are hard-wired the opposite way. The idea that our country can spend unlimited amounts of money ad infinitum with no consequences is, prima facie, an invalid argument. The argument that any entity is going to all-of-a-sudden start spending money in the current economy, sans government intervention, is equally ridiculous.
So, I'll agree that we need more budget deficits NOW if somebody will guarantee that we start saving in surpluses when we get back there... THAT is the definition of Keynesian Economics. We got the spending part down pat. The saving part? Not so much. America needs to create a Rainy Day Fund in the future, even if we to jump-start prosperity with government spending in today's economic environment.
Op-Ed Columnist - Appeasing the Bond Gods - NYTimes.com
The policy elite are making a strange argument in demanding that we engage in human sacrifices to appease the anger of invisible gods.
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