It’s a nonsense neoclassical fantasy to blame this crisis on government debt, when its underlying cause has always been a private sector debt bubble that has now burst.
The last thing we need is for the public sector to also be pulling money out of circulation.
Slashing government spending in a depressed economy depresses the economy further; austerity should wait until a strong recovery is well under way.
…debt is not the disease — it is a symptom. Lack of aggregate demand or, to put it simply, insufficient consumption and investment is the disease.