Burzum wrote:
No. Of course an economy is not as simple as an individual's own budget. The analogy is fully applicable, however. The U.S economy is made of phony wealth that is propped up on fiat currency and foreign debt, and persons such as yourself that follow the Keynesian train of thought will only serve to increase the size of the bubbles in the U.S economy, resulting in a much larger and more devastating burst.
Except, a (Post-) Keynesian like me doesn't believe in re-inflating the credit bubble. I believe in propping up a stagnant economy with crucial investments in decrepit infrastructure, getting a start on "greening" the economy, and investing in social-capital generating areas like education.
Burzum wrote:
You don't get it. There is no use in fighting a recession, it needs to happen. It is a market correction resulting from too much consumption and not enough production. Cutting the budget by a trillion may cause a double dip, but it is much more favourable to the scenario in which an inflated bubble bursts.
US worker productivity is already well outstretching gains in worker income => the US is producing more than the consumer base can afford without credit. There is a negative trade balance, but that's due to an overvalued dollar. A better idea than letting the economy go through painfully slow growth, if not further dips, for 15-20 years (given your advocacy of an Austerian agenda, I suspect 20-25 years of slow growth might be a possibility), is investing in the economy and human capital with stimuluses while working to correct the trade imbalance via a properly valued dollar.
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To Ron Paul supporters, of course he's going to fizzle out. EVERY OTHER ANTI-ROMNEY candidate has. He'll play third fiddle in this race and if his stock rises on the Predictions Market, I might just have to go about getting some sort of prepaid credit card so I can short him.