Tyler Cowen argues against stimulus. Another variant of this argument, which I've heard from Kevin Drum and others, is that America has a serious problem with the imbalance in its current accounts deficit, and a period in which our production falls while our consumption remains artificially stable (through stimulus) is going to worsen the imbalance, with potentially serious economic consequences. I'm not well-versed enough in this stuff to evaluate that argument, but there it is. Meanwhile, it's also possible that our current account deficit will fall from the other side. Part of the CAD is that in recent years, emerging markets have pumped money into our economy by purchasing treasury bonds, and we've not ramped up exports into parity. But that suggests the CAD could fall as emerging markets undergo currency crises and stop buying our dollars with their surplus cash. The problem with that "solution" is that it's one we can't really control, and if it happens abruptly, it could cause a lot of pain indeed.
