>Deficits only increase demand in the US economy if the
>money distributed - whether in spending or taxes - is spent on goods made in
>the US. Given global imports, the impact of deficit spending is unlikely to
>have the multiplier effects on growth promised by Keynes, at least in the US
>context.
U.S. imports are equal to about 15% of GDP, so about 85% of the stimulus would stay within these glorious borders.
Doug