Rachel Maddow, beacon of reason

NEW YORK DAILY NEWS ^ | Monday, January 9 2012 | Stanley Crouch

[sickoflibs]

RE :”“Of course if everyone saves that is called a Great Depression”....
No, not really. I believe you’ll find the depression resulted from a frenzy of spending, in the form of malinvestment. A period of austerity after such prodigality is edifying, despite what demand-crazed Keynesians tell you. “

I know all that, I been doing the Austrian economics ping for three years now. That wasnt my point.

If everyone saves at the same time it is a great (I really mean deep) depression in the immediate present and short term. I didnt mean a 'long' in time depression. My use of the word ‘Great’s should have been clarified by me in that comment to avoid the misunderstanding.
Although it is hard to believe that fast withdrawl of > 1T $ of deficit spending per year wouldnt cause the US economy to go into a coma, much like a crack addict who depends of smoking 10 rocks a day would.

Politics are all about the short term because of elections. Deep depressions in the short term are not politically acceptable.

We also have long term structural problems that make it near impossible to have a decent recovery jobs wise, like ever increasing automation, immigration(less so now) , globalization(=imports and outsourcing services.)