Keynesian economics - prime the pump. Turn the downward spiral around through deficit spending.

So our children and grandchildren can continue to make those interest payments to those wonderful stalwarts of democracy; China and Saudi Arabia, who happen to hold most of our national debt.

Our paper money is not backed by anything but trust in the US government now. Richard Nixon, (Republican), took us off the gold standard back in the 70s. Yes, he was a "Keynesian."

IF you really know your history, you would also know that Nixon's economic policies were a disaster. Taking us off the gold standard was a major long term error, the ramifications of which have been the ever higher cost of living over the last 3 decades. Nixon attempted to counter inflation with wage and price controls, which was another "lead balloon"

Also the proposal that started this thread is NOT Keynesean, Keynes concept of economic stimulus was to go into deficit spending for large scale Public Works such as roads and other infrastructure projects, not massive handouts.

One of the great History myths out there was that FDR's policies cured the Great Depression. There is ample evidence that the application of Keynes's ideas actually prolonged the recession by several years and would have continued to do so had WWII not occured.

By the way both of the major parties are wrong on how to "fix" the economy, we are beyond both "supply" side (tax cuts) and "demand" side (government spending)solutions. The problems run much deeper. If we are to truly save our economy we must do the following:

1. Completly overall of our tax code from the bottom up. Our corporate tax system puts us at huge disadvantage in compared to countries like Ireland. It is too complex and inefficient. Collectively our corporations and small buisness spend 600 Billion dollars a year just on compliance. As a result many businesses have packed up and moved overseas.

2. We must dump the employer-based health insurance system. This idea introduced in WWII has outlived its usefullness and is driving up health care costs. We need to look at a single payer voucher-system, that allows people to directly negotiate thier own healthcare prices according to actual need. Doctors have said over and over again they could greatly lower their service charges if people had the ability to pay cash for service directly, rather than dealing with the insurance middlemen and all the accompanying paperwork. The advantages of such a voucher system is that it both addresses the need for universal health care coverage and brings down costs using the power of the free market.

3. Bernie Madoff was recently busted for a very large Ponzi Scheme and rightfully so. We need to address the biggest Ponzi scheme of all though, the one run by the federal government for the last 60 years called "Social Security" Which is going to go upside down in about the next 7 years. SS needs to be replaced with an interest earning national retirement plan, one that can truly pay for itself. What we have had since 1981 is just another welfare program by a different name.

4. Recognize that ultimately our long term success depends on our ability to become a net exporter. The key to our long term economic growth ultimately depends on our ability to expand into world markets, especially Asia. At some point when China's (and India's) economy grows large enough, more of it's citizens will be wealthy enough to buy American goods. We have to be ready for that transition. The road to that point in the meantime is going to seem long and painful with short term job losses and plant closings. In the meantime a postive way to spend federal funds, would be to increase our efforts to re-train displaced factory workers.

5. Make serious efforts to improve financial education for our kids. We truly need to create classes that teach about investments, budgeting and other financial subjects to highschool kids. This will help them to make better financial decisions when they become adults.

6. Reinstate Glass-Stegal. The removal of this important banking regulation was a major cause for the real estate debacle of the last couple of years.

7. We need to formulate a long term plan to reduce the size and scope of the federal government and pay down the national debt. If we do not begin to address this now, our spending spree will become a massive albatross around the necks of our grandchildren. We need to decide and set once and for all what the specific responsiblities of the federal government exactly are. If we want a permenant, more activist government, then we should be willing to pay for it with increases in taxes all across the board. If we want lower taxes, we must then offset this with a reduced federal government, you cannot have it both ways.

The point is that America has reached a crossroads. Our political leaders have for generations ofuscated, and delayed making the really tough choices regarding our future for fear of losing the next election. Now we face those choices and we are running out of time. We cannot continue to "kick our problems down the road" Doing so is grossly unfair to future generations. We must be prepared to have open and honest discussion about where we go from here and what kind of economy we want to have. Every model has its advantages and disadvantages. We must decide which to pursue. Our failure to truly solve our problems at a deep and structural level will bring about our downfall.

A great empire once stood at this same crossroads in 300 AD. An empire that was riddled with poor management, ineffective comunication, a morally corrupted culture, an over bearing, costly government and a lack of foresight and purpose. This empire simply ignored it's problems and collapsed, bringing a dark age to western civiliztion, that empire was Rome. There are many parallels between the Roman Empire of ancient times, and the western civilization that rose in its place, that stands today. Will we have the strength and resolve to make the hard choices we (Europe and Japan included) need to make or will we continue to put another bandaid on the gaping wounds caused by the indecisiveness and neglect of the last two generations of leaders? I cannot say and perhaps it is truly too late for us. Time will tell.