Boost Social Security benefits by 1/3 to replaces losses in the aggregate, payroll tax holiday for 9 months or, or more or less time as needed. These are things I've seen JK Galbraith advocating publicly. If these aren't perfect ideas, well, what are the perfect ideas...?
I also think there is a fundamental problem with the idea that people were "borrowing more than they should have," or whatever. I think it was Robert Reich who tried to show that a lot of borrowing amounted to treading water to meet basic expenses, not necessarily to consume conspicuously.
-B.
Michael Pollak wrote:
"I completely agree. But then how to avoid a lost decade while the economy gears down?"