"If necessary, the government will go into defecit spending, which is a typical government reaction to a recession."
We are already in a defecit spending mode. The government just announced yesterday that it would increase the amount of treasury bills etc., to borrow money, which of course later has to be payed back.
As I mentioned I really should not be included in these discussions, after realizing I probably cannot contribute any worthwhile ideas. I am not a economist by trade, nor have a solid background in economics. So my thoughts probably are simply not worth responding to. Seriously.
Thanks for your further input.
Right, coming off a major disaster (9/11), a recession, and two wars. This is a perfect example of how the government goes into defecit spending during stressful times. In the '90s ("peace and prosperity"), old defecits were whittled away to projected surpluses.