The Harvahd Business Review reports that when government engages in stimulus, businesses cut back spending! The study is pretty comprehensive, starting in 1967.
When you practice economics at the alter of Keynesism, you believe that government spending primes the pump, increasing demand and multiplying throughout the economy.
This belief is as false as the people who argue the Holocaust never happened.
The “salt water economists” are incorrect. Time to refresh yourself in the fresh water movement that started in Chicago back in the 1950’s. Milton Friedman, Ronald Coase, George Stigler, Merton Miller, Bob Lucas, Gene Heckman were right. The tradition is being carried on by some great work at Booth Chicago today. Check it out at their homepage.
Free markets work. Incentives matter. Centrally planned economies are inefficient.