They are politicians and not economists.
Right, but you'd think with all of the economists that are supposedly advising our politicians, they would have some sense to shut down the engine before it sends us hurtling off the tracks...
The problem is that the economists can scream whatever they want about the economy, but politicians only see things within their limited view of 4-year terms and re-election campaigns. My guess is that they know we are headed for a crash, but would rather just make themselves look good and "get theirs" while they still can. Meanwhile, everyone else will be left to pick up the mess.
The day of reckoning is approacing...
Our involvement in World War 2 is really what stimulated the economy enough to pull us out of the last depression...I wonder if it will take another war to turn things around this time. The simple fact is that we are headed for a crash unless we can either:
1) significantly increase the average rate of growth
or, 2) significantly decrease average rate of debt accumulation.
The current administration is obviously going for #1. Based on the old Keynesian myth that is the 'multiplier effect', govt. spending is going to stimulate and save the economy. Unfortunately, there's no evidence that this works, and our economy is now entirely hedged on this bet that massive govt. spending will spark enough growth to pull us out of certain recession or depression. Of course politicians are willing to go for a flawed economic program like the Keynesian approach, if only for the reason that they get to spend and start up new programs. They are unable to just suck it up and make wide scale cutbacks.
As for curbing debt accumulation, it seems nobody, not our politicians, citizens, anybody in the US, is willing to accept this proposition. We all need to have things now and pay for them later, and blind optimism is unfortunately not enough to carry us through this strategy.