We are all Keynesians now.
Reference to the British Economist John Maynard Keynes who advocated government action to manage the economy.
I come from the school of thought that says when people have more money in their pocket during economic times, it increases demand or investment. Small businesses begin to grow, and jobs are added.
I tend to look at things from the supply side, looking for ways to make it less expensive to do more production. I think that's what creates a demand and keeps an economy moving.
To pump up consumer or government demand would force interest rates up and asset prices down, possibly by enough to destroy more jobs than are created.
Henry Ford, in a sense, was the first Keynesian. He paid his assembly workers high wages so they could afford to buy his cars.
The government would also be wise to press on with its further measures to promote growth, as it will want to outperform the low figures in this outlook. This will mean delivering measures to ease money and credit and to stimulate demand.
We have gasoline at $2 a gallon. If that doesn't drive demand, I don't know what will.