Now that the election is over, you're going to hear the phrases Keynesian economics and fiscal stimulus repeated over and over. My favorite economist, Nouriel Roubini, has proposed a $400B stimulus package (that's borrowing $400B from our future incomes to put people to work today building roads, bridges, buildings to house giant bureacracies, etc). It's the classic deficit spending today to drive the recession away play. And usually it works. Something tells me this isn't a usual time.
Edmund Phelps (a Nobel winning economist from Columbia) isn't so sure in this piece in The Financial Times. Apparently Keynes himself wasn't so sure.
I'm not smart enough by any means to know what the answer is. However, looking at basic economic indicators and our projected fiscal situation over the next several years, I'm not sure that a $1T deficit is that great of an idea. It might be time for a new economic theory.