The trouble, 70 years on, is that America’s debt is already enormous, even before Obama’s “jump-start” has begun to hoover up the taxpayers’ trillions.
Perhaps Obama will not repeat some of the errors of the New Deal. Roosevelt (and indeed Hoover) recalled the anger caused by the wage cuts during the depression of 1920-1 and cajoled employers to keep wage rates stable, even as output dropped. This is a policy supported by the Keynesians of today, who argue that lower wages lead to lower demand, which leads to lower output, which leads to more unemployment, and so on ad infinitum.
from TimesOnline
