Also, that chart from the St. Louis Fed that I posted:
https://fred.stlouisfed.org/series/FYFSGDA188S
is one of the clearest depictions of modern monetary theory I've ever seen. Substantial deficit reduction within ~1yr precedes every single recession depicted on that chart. If you view deficits/surpluses as ledger entries for the sovereign making more or less dollars available to participate in economic activity, recessions following withdrawal of economic opportunity from the economy makes sense. You may not believe in modern monetary theory, but the Fed and Treasury clearly do, and have acted in accordance with that philosophy for decades.
https://fred.stlouisfed.org/series/FYFSGDA188S
is one of the clearest depictions of modern monetary theory I've ever seen. Substantial deficit reduction within ~1yr precedes every single recession depicted on that chart. If you view deficits/surpluses as ledger entries for the sovereign making more or less dollars available to participate in economic activity, recessions following withdrawal of economic opportunity from the economy makes sense. You may not believe in modern monetary theory, but the Fed and Treasury clearly do, and have acted in accordance with that philosophy for decades.