On Apr 24, 2009, at 3:34 PM, Michael Pollak wrote:
> On Fri, 24 Apr 2009, Doug Henwood wrote:
>
>> This whole "get lending restarted" thing has some serious problems
>> if you think that debt levels remain way too high, and that the
>> real economy's dependence on credit got way out of hand over the
>> last decade or three.
>
> I completely agree. But then how to avoid a lost decade while the
> economy gears down?
That's the point of a large gov stimulus program. But it has to be transitional to some new economic model, with a more egalitarian distribution of income and higher taxes on the rich to pay down the stimulus debt over time. With a larger public sector, though one more in balance than it is now.
Doug