Our economy can produce very efficiently if only the demand existed.  Demand comes from consumption, investment, government purchases and net exports.  This is what happens when demand is not there:

U.S. manufacturing activity decreased in December at its fastest pace in nearly 30 years, as businesses cut production and slashed product orders in response to the global recession, according to a closely watched survey.

The Institute for Supply Management’s index of industrial production
slipped from 36.2 percent in November to 32.4 percent in December, the
lowest level since June 1980. A reading above 50 indicates that
manufacturing activity is expanding, while a reading below 50 indicates
a contraction. 

I won’t get into the government stimulus debate, because that is probably just a matter of degree, not whether to do it. 

But despite the public desire to fix current free trade, nobody is seriously addressing our huge Net Imports.  Net Exports are a vital key to recovery.  But we have Net Imports. 

This is not a protectionist position… not an ideology.  It happens to be mathematics.  Nobody is arguing for Smoot Hawley, but we do need to neutralize the protectionism from foreign country currency manipulation and value added taxes.

Whatever the government does to stimulate aggregate demand, the effect will be dulled or eviscerated by our Net Import situation.