The government would have spent more, but at the time the pro-austerity crowd was trying to reduce government spending. This left the federal reserve (and inter

The government would have spent more, but at the time the pro-austerity crowd was trying to reduce government spending. This left the federal reserve (and internationally other central banks) as the primary economic stimulator, which has it's own set of poor effects (a stimulus package can function as a jobs program, whereas low interest rates serve to increase the capital that the wealthy already own).