It is clear what is needed to jump-start the economy and move us toward full employment on a near-term basis: a substantial federal stimulus investing in education, infrastructure, and research. All are long term investments which justify borrowing, particularly at our current, historically low rates.
Paul Krugman's column yesterday Easy Useless Economics, makes the point today that we know what to do, but lack the political will to do so.
I particularly like the quote by John Maynard Keyes: "But this long run,” he wrote, “is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the sea is flat again.”
While I am strongly aware of the need for fiscal responsibility, I believe it is fiscally responsible to put our economy back on track, with full employment resulting from investing in our future. Those who act for the short-term gain of the few by cutting taxes further for the very wealthy and reducing government expenditures for things we need are irresponsibly damaging our future.