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I understand what you're saying. However, the economy being propped up by govt. spending is just a byproduct, not as an objective economists should strive for. Are we in agreement there?
IMHO, when govt. spends, taxpayer dollars tend to go into the pockets of those in the upper income brackets, those with investments in businesses that deal with the govt. If you believe dollars trickle down from there in any meaningful way to the general populace, then you're of one theory. There's a bottle neck in the trickle down path. I think it merely goes into savings and/or other investments; i.e. businesses that outsource to other countries, those who pay minimum wage, etc. Maybe some key legislation could open up the bottle neck and allow it to work as theorized.
However, as it is, the end effect is a disproportionate distribution of wealth which continues each time our govt. spends more tax dollars and/or borrowed money. If trickle down worked as they say, then we'd have close to zero unemployment, an upwardly mobile poverty class and a truly healthy economy.
Just rambling I guess,
Sherwood
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