It’s a truism of pop Keynesian economics that consumer spending drives the economy; if spending slows in a recession; government must make up the difference. In reality, consumer spending merely signals what consumers want; producers may be unable or unwilling to deliver. Government spending may compensate—or make matters worse—depending on the type of spending and whether it’s financed by progressive taxes or by borrowing. . . . → Read More: The Keynesian Stimulus Spending Fallacy