>I'm a firm believer that free and unrestrained citizens are much better at helping people help themselves, rather than the government doing it. You'll have zero chance of convincing me otherwise.
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>Why would I want to convince you otherwise? But the fact is that previously productive people are burdened by impossible debt or unable to feed their families because an economic bubble has burst. The sense of betrayal is profound and if these people are told "let them eat cake," you can expect unrest. IMHO.

This has to be one reason for a govt to be seen to spend money now. So people have a sense of something being done and a sense of being cared for by the society they live in. The alternative approach of ruthless spending cuts would directly hit those least able to manage and in the end lead to a rise in all the social problems brought on by deprivation. So KG would be able to buy the latest toys but might get mugged on the way back from the mall.