1. Consumption ISN’T bad in an of itself, when those consuming have the means to do so. Your friend is so very right, though. But fter 9/11, when savings rates were already dangerously low, Bush told everyone to go spend, spend, spend to keep us out of a recession. I was shocked, dismayed, and convinced he was wrong. We upped our saving in the midst of everyone else’s spending sprees. I believe Bush’s admonition – and people’s willingness to follow his irresponsible directive – set us up quite nicely for this deeper recession/possible depression.

2. Yes, more spending theoretically means more taxes. And you will hear arguments from big business that the US already has more taxes than most developed countries. But big business usually fails to mention that the US also has the most loopholes of any developed country, so businesses end up paying FEWER taxes than almost anywhere else in the world. I just read today that there is a difference of over $300 billion between what is taxed and what is actually owed when the hoops are jumped through. It sure makes it convenient for both parties, who only tell the side of the story that most resonates with their constituents.