The plan is straight out of Keynes, but as Mankiw, Spence, and Krugman have written this week, Keynes is the man to turn to when you need big ideas to get you out of a big crisis. Michael's post is long and pretty detailed, it's not just a blog rant, and it needs to be fleshed out even more and modeled properly, but there is enough conceptual and empirical meat on the bones of this guy's ideas that they are worth reading, and reading twice. The one word summary of Taft's post is 'expand':
# Expand fiscally - junk the cutback vs. tax increase trap. We need money, lots of it, to put back into the economy.
# Expand demand - more spending, not less, is what the economy needs to maintain and expand business activity
# Expand indigenous enterprise: Lay the structural foundations for a new enterprise base - public and private; this will take time, so we have to start soon, tomorrow, this evening.