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That's exactly what President Hoover tried to prop up the economy after the 1929 stock market crash.

• smallnamespace 10y ago
  And he would've succeeded if he was willing to blow up the deficit further. That actually happened with our entry into WW2, sharp increases in spending and hiring, and immediate end to the Great Depression (note that weapons, ships, planes and the like are about useful to a peacetime economy as digging holes in the ground--the key is you need to hire a lot of people to make them)
• notfromhere 10y ago
  And exactly how the WW2 recovery happened. Government created demand for products, and deficit spent until the economy roared back. Subsequent gov't surpluses from increased tax revenue were then used to pay down deficit.