Re: Taking the punchbowl away
The pump priming as you call it may have worked to prevent farther economic distress, but in my opinion it is anything but a long term solution. What our biggest problem is right now as a country IMO is too much debt, and I don't see how you can cure debt with more spending. There are two ways to cut the deficit/debt, and that is to raise revenues, or cut spending. Actually, you can do some of both, which is probably the best solution, but the road we are on is heading off a clitt.
I have a cousin that married a Canadian, and she says some years back Canada was in a similar situation, with high debt, and deficet spending (no idea on the severety of it though). By cutting the fat, they were able to get their house in order in such a way that they are gradually reducing debt, while still keeping universal health care. Her personal observation of it (and it is just one person's opinion) was that Canada cut back on some of the excessive government employees, may have raised some taxes, but not to the point of stifiling the economy, and utilized Canada's natural resources to it's benefit. Of course, in order to do this sort of thing and make it WORK, their governmen had to actually work together to find a solution to a problem instead of spending 50 weeks a year campaigning and doing political posturing like our Congress does.