Just in case we haven't been clear: deficit spending in a recession is actually a strategy, a deliberate strategy. It is not a sloppy mistake we are making in which we've just decided to spend with no regard for what amount of money is coming in.
You may disagree with this strategy. The other major strategy to stimulate the economy is for the Fed to lower the interest rate, but it's already at zero. We all like that option, too, but for this recession it's not enough.
You may think a tax cut is better to stimulate the economy than government spending. Most data supports the idea that government spending is better, but because a good portion of the American people prefer tax cuts, we made 280 billion of the stimulus package a tax cut for 95% of working Americans. But still, we have to increase the deficit to either cut taxes or spend, and that's the point.
We are making this point to rebut anyone who argues that the deficit at this point is irresponsible. Deficit spending is how we got out of the Great Depression. Deficit spending is how Reagan got us out of the 1980 recession (only he forgot to reduce the deficit when he was done). And deficit spending is what's going to get us out of this recession.
My guess is, it's what everyone in the White House and the Council of Economic Advisors is thinking, they're just afraid to say it in public. I suppose they could throw in something about how every president between FDR and Obama has lowered the debt, except for Reagan and the Bushes.
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