On Apr 1, 1:38*pm, "Ed Huntress" wrote:

'Doesn't work, Dan. The UK's GDP climbed right through the most severe
deficit spending in its history. It dropped from 1980 to 1984, and then it
went 'way up -- just as deficit spending took off like a rocket:


My point exactly. UK was in a recession from 1980 to 1984. They did
not do a lot of deficit spending to end the recession. They kept
business as usual, steady as she goes. And the recession ended anyway
because 1. recessions end after some time unless you do something
stupid, and 2 the brits knew what changes the government was making
( essentially none. ).



The idea that deficit spending leads to a loss of confidence doesn't seem to
have any validity.

Ed Huntress


And I was not trying to say that deficit spending leads to a loss of
confidence. But if there is a lot of change, people hesitate until
they understand what the new business environment is. Or at least I
think they do.

Dan