People will not demand more until they feel confident about their economic future. Moving inexorably in the direction of European Socialism, by that, I mean 40-50% government-to-GDP ratios, is a recipe for creating confidence not in our economic future, but in its malaise.
Further, keeping the housing market from clearing, persisting in the Chinese water-torture of unending foreclosure, instills confidence only in years more of downward pressure on housing, preventing investment in, historically, one of our largest economic sectors.
Finally, having the 2nd highest corporate tax rate in the world, and perhaps the highest when accounting for dividend and capital gain taxation, and state taxation on top of each, provides incentives for new factory investment in other countries, not here, other than for grand slam no-brainers, which are a miniscule percentage of projects.
Repeat after me brain-dead FDR/Keynesian cultists: “just a little more stimulus will get us past this rough patch.”