Apparently Republican Economic Theory has returned to the Treasury View which is summed up as “Government spending crowds out private spending or investment, and thus has no net impact.” which is sorta weird since it’s a return to the macro-economic theory of the 1920/30s.
We dodged a bullet called Bush’s Social Security Privatization which had an implicit assumption that 1) the market only goes up on a 10 year basis and 2) you can trust the risk evaluations of securities. Both of which has been proven false in this current crises.
The recent crises is destroying the illusion of increasing wealth/lifestyle afforded by credit. This leaves the stagnation of medium incomes, which demonstrates that trickle-down theory is BS.