Metaphors for the role of government spending under current economic conditions and for the long haul:
- Put out the fire.
- Once the fire is out then worry about the resulting water damage to the structure.
- Also remember that permanently flooding the structure isn’t a good long-term solution.
- Lower the unemployment rate. Get people back to work. Contemporary macroeconomics tells us that this will require changes to government fiscal policy, i.e., enacting some Keynesian stimulus.
- Worry about the deficit after we’re back to full employment (or at least close to it) and the economy is healthy again.
- Letting the debt be an ever increasing fraction of the GDP would not be good. However, that’s a long term issue. We have a near term problem which needs to be dealt with first – see Item 1.