[jmonegro]

That is actually /not/ very good for the economy at all. If you abruptly reduce spending to the absolute minimum, sure it sounds very idealistic, but you're grinding most economic activity to a halt, causing hundreds of millions of layoffs, and minimizing the job market.

I estimate that we'd have about 60-70% unemployment, and no jobs for those people to go to because, well, other people just aren't spending any money.

[snitko]

The second half of the 19th century the US was in deflation, yet economy boomed and unemployment wasn't high at all.

[jmonegro]

Deflation != hyperdeflation