Everywhere it seems the problem is the same, the failure of the neo-liberal experiment. David Brooks quote for Edmund Burke in todays New York Times put it quite succinctly. We must rein in our private appetites, particularly the rentiers and financiers who produce nothing, and merely extract wealth from the productive sector. The only solution is to better spread the wealth around to all who contribute to producing that wealth, so that they can continue to consume and produce without going into debt peonage to keep up appearances.
Supply side stimulus was supposed to be answer for stagflation, but it was really just a justification for the GOP's eternal agenda of tax cuts for the rich, union busting for the working class, and more austerity for the poor. It put us in the mess we are in now. We already have overcapacity due to a lack of demand, which is what you get when you cut wages and benefits. And you want to create even more capacity? Get real. You have to be able to sell the stuff.
The answer to deflation is to stimulate demand, not supply. Give the executives a huge pay cut and the workers a bit of a raise.