Amen from the high heavens!!!

The current Administration and this Congress as well as the one that just got kicked out in 2006 live by the motto that "debt doesn't matter!" Basic that French Queens 'let them eat cake.'

With 50 state Governments, all having issues but all of them basically sound, Washington needs to follow. And all 50 states have a balanced budget requirement. Spend as much as you want so long as it is money in the bank. The states do bond but a balanced budget requirement means that bond repayment must also be accounted for in the budget. Washington borrows money to make the payments. We are basically run by a buch of (forgive my terms) white trash who use payday loans to pay the rent. Always expecting in the future to make more money than we do today.

One other thought, Steve Forbes may have had the best solution yet. Remove the ability of the Fed to set interest rates. It is rent control. Let the market set the rate. We chase China because they have pegged the Juan on the dollar. And yet we peg the dollar. Free float it.

Balance the Budget!

So ...tax rebate won't reduce weight of debt? ... Even so its nice to see a stimulus package that doesn't target the rich for a change. Please explain, what is wrong with trickle up?

The answer to your question So what is that demand-side economics doesn't work - tax policy that encourages capital investment is what really works to create jobs and economic growth