When the government does the spending the rest of us are pushed out of the way. Governments cannot create demand, they can only divert it into the production of their own preferences instead of ours which are sometimes, but not always, the same. The notion that their soaking up our resources somehow magically adds to the sum total available to everyone is the most monstrous of all of the monstrous untruths now found in modern economic theory. Here is an article about the United States that would have a sharp resonance across the world. 7 things the middle class can’t afford anymore is its title. I will only reproduce the first of them. You can then read the whole thing for yourself.
Vacations
A vacation is an extra expense that many middle-earners cannot afford without sacrificing something else. A Statista survey found that this year 54% of people gave up purchasing big ticket items like TVs or electronics so they can go on a vacation. Others made sacrifices like reducing or eliminating their trips to the movies (47%), reducing or eliminating trips out to restaurants (43%), or avoiding purchasing small ticket items like new clothing (43%).
Keynesian theory pretends that if the government spends more of your money, you will end up better off. Are people really that stupid to believe such a thing?