Keynsian bullshit. This is how we got here.
If there is excess capacity and no demand, this would result in a loss-TOO BAD. Company goes down.
Increasing int rates to STIFLE economy-why would we wanna do that?
Till we hit recession phase? We should stifle the economy with higher interest rates till RECESSION, so that now we can INCREASE GOVT demand and transfers.
How 'bout we increase demand by giving people more of their money back-TAX CUTS-more money increases demand and will return 100+% to economy and keep the govt out of it.
Direct consumer spending returns 100% and any investment activity even more through a multiplier effect.