Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.
“No, what I should really like to do right now, in the full blaze of lights, before this illustrious assembly, is to shower every one of you with gifts, with flowers, with offerings of poetry - to be young once more, to ride on the crest of the wave.”