If given carte blanche on the national debt, is a recession easy to "fix?"

[Shodan]

@dracoi

And you can say something similar about the stock market, even though “everyone knows” it’s not doing well.

It is entirely a mis-match between expectations/perceptions and reality.

Actually it is cherry-picking and spin.

@Velocity

Seems to me that if a President, in the midst of a recession, takes the viewpoint of, “F*** fiscal responsibility, f*** the national debt, I am going to pull this country out of its current recession no matter what,” that a recession is pretty easy to get out of.

See puddleglum’s post for some reasons why this probably isn’t a good idea. Spending only pays for itself if it pays for itself. Simply borrowing and spending can get you out of a recession, but then once the spending binge ends whatever you spent it on has to start paying for itself or you are worse than when you started. It’s like putting your mortgage payment on your credit card.

@UDS

No, not necessarily. In the short term, people would feel flush with cash, but to the extent that they spend it on buying (say) flat screen TVs made in China, and champagne produced in France, they are not doing a huge amount to stimulate the US economy, other than that relatively small part of it which occupies itself with handling and retailing imported electrical goods and fine wines.

Or they pay down their debts with the found money, which is what usually happens.

Regards,
Shodan