On 12 Jul 2003 01:08:28 -0700, (The
Enlightenment) wrote:

vincent p. norris wrote in message . ..
I don't want to take sides in the main issue being disputed here, but
merely point out that the following remark is mistaken :

Second, where is the money to pay for these tanks coming from? It's a depression,
and tax revenues are in the toilet.

Economists have understood since the mid-30s that the SOLUTION to
depression is for government expenditures to EXCEED tax revenues.

But only by a small amount and only when needed.

OF COURSE only when needed! But by definition, it is needed during a
depression! And a "small amount," sometimes known as "pump priming,"
may be insufficient, as we learned from experience.

Indeed, it was the spending on military build-up that brought the
economy out of the Great Depression of the 1930s.

I think this is somewhat of a myth with some truth.

You're free to think whatever you please, but damn few mainstream
economists, if any, would agree with you.

You are talking about monetary policy.

Negative! I was talking about FISCAL policy. See any economics
textbook on the topics of fiscal policy and monetary policy

vince norris