If one keeps predicting a depression, sooner or later, he'll be proven right.
The current demagoguery, which preaches balanced
budgets and which equates deficit spending with "liberalism,"
has intimidated those who know better - politicians and pundits - from demanding that monetary policy favor people instead of banks. (The most poverty-ridden American states, those of the American South, have always prided themselves on their balanced budgets.) Unfortunately, William Vickrey, the 1996 Nobel laureate in economics who understood the fallacy of budget balancing and who regarded his new distinction as a platform for educating the public, died shortly after his Nobel was announced.
And so the balanced budget myth is perpetuated.