as well as the conservatives say that this is the ONE situation where we should NOT be worried about deficit spending. The only risk is not providing a big enough stimulus -- that is, in not spending ENOUGH.
So we won't be raising taxes, and we will be cutting taxes, and we will be spending money on building roads, bridges, etc.
Paul Krugman, the liberal economist who just won the Nobel Prize, has been writing about this in the NYTimes. For example:
http://www.nytimes.com/2008/12/01/opinion/01krugman.html?_r=1&scp=3&sq=krugman&st=cseRight now there’s intense debate about how aggressive the United States government should be in its attempts to turn the economy around. Many economists, myself included, are calling for a very large fiscal expansion to keep the economy from going into free fall. Others, however, worry about the burden that large budget deficits will place on future generations.
But the deficit worriers have it all wrong. Under current conditions, there’s no trade-off between what’s good in the short run and what’s good for the long run; strong fiscal expansion would actually enhance the economy’s long-run prospects.
The claim that budget deficits make the economy poorer in the long run is based on the belief that government borrowing “crowds out” private investment — that the government, by issuing lots of debt, drives up interest rates, which makes businesses unwilling to spend on new plant and equipment, and that this in turn reduces the economy’s long-run rate of growth. Under normal circumstances there’s a lot to this argument.
But circumstances right now are anything but normal.
SNIP