Fiscal stimulus is the only answer when the economy is in a liquidity trap. What is a liquidity trap? I'll save you the time:
From wiki
The formula is based on reality: For example, see the
NIPA tables from BEA.gov, which give a thorough breakdown of the C+I+G+NX = GDP
And the sky is blue on a bright summer day. What is your point?
More of your ignorance is displayed. A negative import/export ratio symbolizes we purchase more from abroad than we sell to them, which is a good thing if your trading partner has a low-skill labor comparative advantage. However, a current account must be balanced, and therefore the absolute value of NX is then injected from abroad in the form of foreign direct investment. For more information, research the
current account.
What makes you believe that cutting spending will lead to more consumption? If you cut spending, you will cut jobs which will surely decrease consumption, and put more fear in the consumer.
Nonsense. You simply lack the experience and education in regards to the political economy that would allow you to even identify my position.
Massive government spending began in the 80's and continues to this day. It is simply irresponsible to believe gutting government at a time where unemployment is @ 9.1% will lead to growth. I might lead to growth 10 years from now, but an entire generation will likely suffer from such a policy.
Which would kill jobs instantly, and cause a negative blow to consumer confidence.
WTF? Interest rates are at or near all time lows, taxes are at their lowest levels since the 20's.
Wow.... I mean, this is cute. A stronger dollar makes are products more attractive overseas?
:lamo