Economics is one of those fields that really makes my head hurt, as it consists of a million little transactions that add up to huge patterns, and small things that seem insignificant are nonetheless critical to figuring out the pattern.
Economics is also part of the 2008 United States Presidential election. Various ideas are being pushed by various groups, and candidates are trying to weigh in with ideas of how to decrease unemployment, reduce inflation, and raise the standard of living in the United States.
Diversity seems to be the key. If there are many different products and services in the market, then the production of these goods will encourage the hiring of many people to make the products and perform the services, and these people will be able to pay for other goods and services in turn. This hopefully becomes an exponential cycle, unless diversity stops growing. At some point, people feel they have all the goods and services they can afford, and buying slows, hiring slows, and a depression momentarily grips the market.
How to increase diversity? People need ideas. I suggest science funding as a way of producing many new ideas, at least some of which will inspire a brave entrepreneur to start up.