I'd agree that a deep recession is the worst time to cut spending or raise taxes in terms of economic impact, but there needs to be more discipline in terms of generating surpluses during economic booms in order to finance the deficit spending in recessions. Otherwise this "half-Keynesianism" results in a death spiral of debt. We can overspend in a recession IF we can pay down the debt in good times. We can't "act Keynesian" only in hard times; it's just not sustainable.I'd like to see fiscal discipline through the business cycle but I think a law that requires tax increases and spending cuts during every recession will prove to be a very bad policy.
Unfortunately, government's track record of using surpluses to pay down debts or build a "rainy day fund" is atrocious. There's just way too much pressure by special interests to either spend it on a pet program or refund it to the taxpayers.