Look at the deficits the US government ran during World War II (far, FAR larger than the current one). Or the one the Japanese government ran up that finally ended the Lost Decade. Deficit spending has a very extensive track record of success during depressions. The hope is that this recession will force Keynesian economics back in vogue, which also will bring the return of policies (that have nothing to do with deficit spending - Keynesian economics is about much, much more than that) that will improve the soundness of the economy in general (like capital controls, regulated currencies, and much stronger restrictions on the "shadow economy", ie, speculaton).
Not that I'm particularly interested in living through it, but another Great Depression is probably what this country needs. As a nation it is my opinion that we have gotten fat, lazy and entitled and a massive slap would be required to return us to level course. It'll suck, sure as sure but a wakeup call on how to live within your means would be for the best in the end.
I'm so glad such an impartial individual has appointed himself the judge and jury of every American. Truly we should abide by your carefully measured and wholly un-egotistical opinions. Also, in case you haven't noticed, this shift away from borrowing by consumers is already well along. The worry is that the economy isn't sound enough to thrive without the short-term artificial spending power created by consumer borrowing. And that isn't consumers' fault - that can be laid on the doorstep of Neoliberal economics.
