I think you're grossly over estimating how much we can raise from higher taxes for the rich... or at least in context of how much we need to spend.

Let's spend and spend into oblivion.

My country's debts are so high that one third of all tax money is already required only to pay interest and compound interest. Our politicians do not even consider actually paying back at least parts of those debts, because decades ago they figured out a much better solution:

We simply let future generations pay for us!

No matter if economy is running great or if there is a crisis, the politicians in my country always know when the wrong and and when the right time for saving is. And as it turns out, "now" is *always* the wrong time and "some time later" is *always* the right time.

And for some reason, their arguments always sounds more or less plausible. I'm no expert in economy, but over the decades this has made me sceptical.

to be fair, I would cut spending on some things too, though I doubt the same things most poeple here would, I'm thinking things like defence and top public servants salaries, i'd also reallocate existing funds and stuff.

You don't improve the economy by stealing peoples money it does not work.  

You create jobs by lowering taxes

and then the gov't gets more revenue

USA getting jobbed again in the world cup

I'm American and I hope they lose. U.S. and soccer/football just don't go together. I figured I'd watch one game in the world cup. lol

Politics playing an important roll in this world cup 

Why?

I believe that the main cause of the recesion was due to there being an inflationary gap (we were producing beyond the long term rate of growth), but more importantly, because of the loss in assets. People used to think they were wealthy due to their assets (HOMES, stocks, etc) being so highly valued. Now that value plummeted. Although their income didn't change, people began to spend less and saving more.

This meant that companies had to produce less, resulting in layoffs, and more importantly, a REDUCTION in INVESTMENT.

We then see the multiplier take an ugly reverse effect, where people spend less, get fired, then spend even less, get fired, etc.

The long term takes a REALLY long time, as it is the process of expectation for DEFLATION to adjust. People have to accept lower wages.

But Krugman has other worries. Our LONG TERM OUTPUT itself can be reduced.

People can succumb to drugs, become permanently depressed workers. Our kids will not get proper education, they won't be able to land early jobs, reducing human capital. I mean, you guys are over OVER estimating how quickly we can "ride it out".

Hate to break Godwin's law, but guess what gave Hitler power? The great recession/depression.

Well, didn't know you were a Keynesian =D

Keyensians LOVE lowering taxes during a recession.