LoneSnark All American 12317 Posts user info edit post |
It has been argued persuasively that deficit spending during a recession is on-average a good policy. Of course, it has been taken way too far, as this behavior is automatic: as a recession hits, government revenues fall, so if they just maintain current spending then huge deficits will develop, which is good. The problem is that in response to a downturn they decide to spend even more, which threatens to do more than just borrow skiddish money; it also winds up borrowing money would have otherwise been productive. 12/11/2008 2:48:33 PM |