Doonesbury comic strip straight from Bezerkeley

Eichengreen:

The solution is straightforward. It is to fix the problem of deficient demand not by attempting to further loosen monetary conditions, but by boosting public spending. Governments should borrow to invest in research, education, and infrastructure. Currently, such investments cost little, given low interest rates. Productive public investment would also enhance the returns on private investment, encouraging firms to undertake additional projects.

After a bunch of Doonesbury stereotypical observations we get:

Ideological and political prejudices deeply rooted in history will have to be overcome to end the current stagnation. If an extended period of depressed growth following a crisis isn’t the right moment to challenge them, then when is?

OK, Texas grew at over 4% during the cycle, and they still seem to chug along in spite of the oil collapse.  Now tell me what is the likelihood that Texas will give up sovereignty in favor of Delong's unelected committee of Kanosian pension stuffers?  

Here is your chart Barry:

This chart uses Magic Walrus assumptions to calculate potential growth (blue line).  If you notice, Barry, potential growth has been dropping as debt has been rising. This is the statistical method used at Bezerkeley and it does not predict good multipliers.