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when a depression threatens or is actually here then deficits have to take a back seat to stimulating the economy. Herbert Hoover showed what happens when you try to balance the budget as the economy shrinks - you just accelerate the downward spiral. We shouldnt have run deficits during the good years from 2002 onward as the economy expanded. We SHOULD run them now to prevent a depression. Once we are on an upward track again we should then get some fiscal sanity.
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We had good years during the Bush administration?
I don't have education in financial systems. This strategy you mention wouldn't work well for our household or for a small business though. The first thing they tell you when you find yourself in a hole is to quit digging. As far as this working for a national strategy, Sck5, I hope you're right, because it looks like that's what they are going to do whether I agree with it or not.
I personally think "spending" our way out of recessions just keeps putting off the pain. We'll see.