Many people decry the stimulus plan as deficit spending adding debt to future generations. They say that households need to tighten their belts in tough times, and why shouldn't the government do the same.
What do, or should, households do in good times vs. bad? Say you or your spouse lose your job, what do you do? What you will initially lean on is unemployment if available, and use your savings to hold you over. Unemployment is an insurance system where your former employer was paying in while you were employed. Your savings comes from money you didn't spend when times were better.
When households use their savings, they are running deficits. You are sensible, and may cut back in certain areas, but if you include unemployment benefits as a drawing down of savings, many households are definitely running deficits. Add in credit cards and you are even further in deficit spending category.
I believe deficit spending during tough times is necessary both at the federal government level, and at the household level. Where I believe a huge error was made was in not saving when times were better. I have not read any Keynes, but I wonder how optimistic he was about governments reining in hot economies.
The period from 2003-2007 was better economically than the current situation, but our government chose to cut taxes and not save for upcoming worse times, and many households were increasing their debt levels. While stimulus and deficit spending is currently needed, when times improve we need to remember that trouble will eventually hit again and that we need to prepare better for it.