The basic philosophy behind Keynesian economics is that the government SHOULD deficit spend during times of economic hardship to stimulate the economy and repay the debt during relative good economic times. It was the increased government spending during WWII that eventually lifted the US out of the great Depression. It took 30 years, but that debt was eventually paid off.

Like it or not, it's the philosophy by which our government has run its fiscal matters since 1932.

But it was perverted in the 1980s by Ronald Wilson "deficits don't matter" Reagan who continued to deficits spend to pay for tax cuts and increased military spending. During his first two years, it was well in line with Keynesian thinking. But after 1982, when the economy had recovered, we should have been paying back the debt incurred during annual deficits from the previous few years.

But we didn't. In fact, we kept on spending like drunken sailors, Republicans and Democrats both being to blame. While the rabid right loves to lay all of this on the Democrats, it should be noted that Republican presidents, who held the White House for 20 of the 30 years between 1982 and 2002, never cone submitted a balanced budget to Congress. Only Bill Clinton, working with Republicans in the House, came up with something close to a balanced budget, albeit one using money from the SS Trust Fund. But when Republicans held the White House and Congress, nothing was done. During the Bush II years, annual government spending went from $1.7 trillion to $3.1 trillion (in dollars not adjusted for inflation) , a 92% increase. Since 2010, the first year of an Obama budget, spending as remained in the $3.2 to $3.45 trillion range in non-inflation adjusted dollars. If inflation is included, the spending figures are basically flat from 2010 to present.

Throughout the relative economic good times of the 2000s, we kept spending and spending, even fighting a war off the books, hiding it's true impact on annual deficits. And when the economic crisis hit in 2008, the cupboard was not only empty, but stuffed with $14+ trillion in IOUs. IN 2009, the interest on the total US government debt was about $458 billion, about the same as half of the total debt in 1980, which was $924 billion.

Obama is nothing but another Keynesian follower who used deficit spending to "pump" the economy. The long term effects are yet to be known.

Most alarming is the 40 year long failure to invests in infrastructure and education, something that will likely have greater impact than the paper debt we've incurred.

Or, it could be as Keynes said when asked about debt: "In the long run, we'll all be dead."

The basic philosophy behind Keynesian economics is that the government SHOULD deficit spend during times of economic hardship to stimulate the economy and repay the debt during relative good economic times. It was the increased government spending during WWII that eventually lifted the US out of the great Depression. It took 30 years, but that debt was eventually paid off.

Like it or not, it's the philosophy by which our government has run its fiscal matters since 1932.

But it was perverted in the 1980s by Ronald Wilson "deficits don't matter" Reagan who continued to deficits spend to pay for tax cuts and increased military spending. During his first two years, it was well in line with Keynesian thinking. But after 1982, when the economy had recovered, we should have been paying back the debt incurred during annual deficits from the previous few years.

But we didn't. In fact, we kept on spending like drunken sailors, Republicans and Democrats both being to blame. While the rabid right loves to lay all of this on the Democrats, it should be noted that Republican presidents, who held the White House for 20 of the 30 years between 1982 and 2002, never cone submitted a balanced budget to Congress. Only Bill Clinton, working with Republicans in the House, came up with something close to a balanced budget, albeit one using money from the SS Trust Fund. But when Republicans held the White House and Congress, nothing was done. During the Bush II years, annual government spending went from $1.7 trillion to $3.1 trillion (in dollars not adjusted for inflation) , a 92% increase. Since 2010, the first year of an Obama budget, spending as remained in the $3.2 to $3.45 trillion range in non-inflation adjusted dollars. If inflation is included, the spending figures are basically flat from 2010 to present.

Throughout the relative economic good times of the 2000s, we kept spending and spending, even fighting a war off the books, hiding it's true impact on annual deficits. And when the economic crisis hit in 2008, the cupboard was not only empty, but stuffed with $14+ trillion in IOUs. IN 2009, the interest on the total US government debt was about $458 billion, about the same as half of the total debt in 1980, which was $924 billion.

Obama is nothing but another Keynesian follower who used deficit spending to "pump" the economy. The long term effects are yet to be known.

Most alarming is the 40 year long failure to invests in infrastructure and education, something that will likely have greater impact than the paper debt we've incurred.

Or, it could be as Keynes said when asked about debt: "In the long run, we'll all be dead."

Excellent summary of past economic policies leading up to today's situation. Debt accumulated mainly from Reagonomics. ha. Ironic. I consider myself a Hamiltonian conservative and Reagan was the basis of my switching to Dem in 1984.

In terms of investment in education, now with the internet and virtual universal access to knowledge, it's a relatively simple matter of creating many and varied multiple curriculum threads and sides and materials on the internet so that education can be individualized and teachers become guides and advisers instead of drill sergeants. Simple and relatively inexpensive but requiring a program set up to get it started. Curriculum development could make every teacher effective, which depends more than anything else on effective materials and curriculum. Merit pay for special teachers, the Obama/Duncan idea, simply creates ill feeling. What is needed is curriculum that makes it possible for all teachers to be effective.

Excellent summary of past economic policies leading up to today's situation. Debt accumulated mainly from Reagonomics. ha. Ironic. I consider myself a Hamiltonian conservative and Reagan was the basis of my switching to Dem in 1984.

In terms of investment in education, now with the internet and virtual universal access to knowledge, it's a relatively simple matter of creating many and varied multiple curriculum threads and sides and materials on the internet so that education can be individualized and teachers become guides and advisers instead of drill sergeants. Simple and relatively inexpensive but requiring a program set up to get it started. Curriculum development could make every teacher effective, which depends more than anything else on effective materials and curriculum. Merit pay for special teachers, the Obama/Duncan idea, simply creates ill feeling. What is needed is curriculum that makes it possible for all teachers to be effective.