Perhaps if we expand the meaning of Keyensian "Government investment in infrastructure" to include human infrastructure and provide stimulus, or at least a stable platform, for the actual nodes of demand (the people) we can get back to optimal growth faster.
The idea that we can have a quarter of the people or more (the poor and working poor) in a state of playing zero sum or negative sum games -- exploitative economic relationships -- non-convex factors in what should, ideally, be a convex efficiency curve, and still reach market efficiency is silly. We just reach the state where the convex portions of our economy cannot compensate for those massive destructions or stagnations of value during times of contraction so it is easier to shake those results out of the aggregate. But that destruction of value happens even in times of relative prosperity and overall growth and it would be wise to whittle down the problem while is relatively painless.
Take pain and death out of the equation for the people through direct stimulus. Create a market where everyone must be enticed with value-add to trade. Watch demand bubble up and create the strongest growth possible.
The idea that we can have a quarter of the people or more (the poor and working poor) in a state of playing zero sum or negative sum games -- exploitative economic relationships -- non-convex factors in what should, ideally, be a convex efficiency curve, and still reach market efficiency is silly. We just reach the state where the convex portions of our economy cannot compensate for those massive destructions or stagnations of value during times of contraction so it is easier to shake those results out of the aggregate. But that destruction of value happens even in times of relative prosperity and overall growth and it would be wise to whittle down the problem while is relatively painless.
Take pain and death out of the equation for the people through direct stimulus. Create a market where everyone must be enticed with value-add to trade. Watch demand bubble up and create the strongest growth possible.