If this “theory” of economics had any validity then the Soviet Union’s economy would never have crashed and the socialist countries of North Korea, Vietnam and China would have the highest per capita GDP and highest per capita incomes. This has NEVER been the case in actuality (do a Google search on this for yourself and read the CIA factbook entries if you don’t believe me). The reality is that all government spending comes from the private-sector economy because government is structured as an endogenous variable to economy that supports it. If you want to change this dynamic then the economy must be restructured so that all units of government are exogenous variables. Once you do that, all fiscal spending becomes stimulative in nature (stimulating both the demand schedule for capital investment and the demand schedule for employment). Until you do that it is not mathematically possible for the government to create a better economic outcome than the private-sector and this is the actual result in every case that the government has attempted to enter a private-sector industry. In each case, the government ends up destroying the business and offering the remaining scraps to the market. This has been true of agriculture, heavy industry, transportation and every other sector. It can’t work because political philosophy is no match for the laws of mathematics.