Quote: Sal Paradise "where is the money going to come from? The government will have borrow huge amounts if you believe in Keynesian theory.'"
The government can borrow money at record low interest rates (during the last year it was borrowing at negative real interest rates). A fiscal stimulus would be very effective at delivering increased economic growth, because the economy is currently struggling and we are in a liquidity trap.
Its not a case of borrow money for a stimulus vs save money by cuts. Its a case of borrow money to fund much needed economic growth (which reduces debt as a percentage of gdp), or make cuts which devastate the economy, kill off growth and thus lead to higher borrowing anyway.
Remember, because the cuts have damaged growth to such a larger extent than planned, Osborne is actually borrowing more than Alastair Darling was going to.