Thanks a lot for your replies on the why we're in debt question. Seems to be cos we stopped making stuff and turned into a finance economy (I don't really understand why this would lead to us as a nation owing more, did we buy other countries debts because we believe long term they will be repayed. Or something
), we've over spent and then it was all made worse by bailing out the banks. Is that fair?
Whatever the reason, it seems most people agree there is a debt and
something needs to be done.
kyser showed that we can either cut spending or tax more or a mix. Other people seem to think that by investing a lot more (borrowed) money into the economy, we create jobs... make more money... then can tax people more... then pay off more debt. (this is called Keynesian stimulus).
So.. it seems that the last option is best for most people if it works cos there is less unemployment, less poverty, less people being made homeless. But it also seems like the most risk. What evidence is there that borrowing more to invest will work? If it doesn't I guess we're doubly fucked.