This question should have an easy, straightforward answer, but for years I've been unable to get one, or to figure it out. The aftermath of Katrina gives reason to ask it here.
Conservatives believe that lower taxes and smaller government are good for the economy, because the more money there is in private hands, the more money gets spent and invested. The spending and investing create more commerce, which creates more jobs, which not only directly (thru trickling down) benefits more people, but also ultimately generates more revenue for government.
My question, though, is this: since higher taxes and bigger spending by government still constitutes spending, isn't that money in the stream of commerce anyway? If it's being spent, it's still generating jobs & commerce... right? What difference does it make, purely from an economics standpoint, whether it's the private or public sector doing the spending? As long as the money's in the flow of commerce, the benefits should still trickle down, right? Why is this not the case, since conservatives believe it's not?
C-Feed? It's your time to shine...