[redthrowaway]

Even if I grant all of your points theoretically, there are no real-world examples to back them up.

Libertarian (by way of Austrian) economics failed in this recession. Period. That's not to say that they don't lead to greater growth in the good times, but when the chips are down you want Keynes. You want large government intervention. Every successful recovery has rested on this principle, and every policy in opposition to it looks set to fail.

A rational government would apply the appropriate models in the correct situations; we are, unfortunately, stuck with self-serving idiots.