According to Keynesian theory, government spending improves money circulation throughout the whole economy in a way very similar to how bypass surgery improves

According to Keynesian theory, government spending improves money circulation throughout the whole economy in a way very similar to how bypass surgery improves blood circulation in the whole body. If you distribute money to people who need it (generally, the unemployed,) they'll end up spending it on important services (the hope is) which will end up in the much needed pockets of those providing the sevices, who will spend it on much needed services, etc. Government spending is a mechanism for redistributing the wealth in a way that saving won't swamp, for the economy is a sociological phenomenon. However, it is to be argued that distributing money randomly in public works isn't exactly the best way to handle it. The previously unemployed are not the most likely to build businesses to find sustained employment, to create wealth for the economy. Random public works are not so likely to create wealth for the public. There's the possibility to do much better; unfortunately the simplified Keynesian analysis doesn't capture this. One example of a terrific project is microfinance. These loans give people a chance to create actual sustainable businesses. The loans are repaid at a rate of nearly 97.7%. What this shows is several things. The first is that the capital of microfinance can keep on giving. At this repayment rate, the capital can be given out 30 times before it's at half of the initial amount. There's thus a huge multiplier effect there. Furthermore, the repayment comes from the proceeds of the operation. Hence, in 97.7% of the cases, the businesses that are funded will keep on going -- another huge multiplier effect. On a giving basis, there aren't enough dollars in the world to solve poverty: with a system like this, there might be.