oh yeah. it got sucked into treasury bonds.
[quote]You want to cut spending not because of economic factors but because it furthers your social agenda of less government, the economy be damned. ]/quote]
that is incorrect. both times in the last century that the government slashed spending as a response to economic turmoil it was rewarded with booms. in contrast, over the last 40 years, in every single OECD nation, the "stimulus" packages that have been dependent on increasing transfer payments have been the ones that have failed (the success stories generally included cutting business taxes).
demand is a function of supply. you won't fix the one till you've worked on t'other.We are a consumer economy, we don't produce enough, if someone doesn't spend the economy will never recover, it will just keep getting worst.