Yes, and all signs now point to increased business spending. Increased consumer spending leads to increased business spending, not the other way around. BTW, from what I hear, the transportation industry (trucking) is in the process of buying new trucks to replace the older ones that they have because they haven't been replacing them as much because the economy wasn't that good and because of uncertainty. Just another real life example.
No it doesn't. Businesses and investors alike look toward the future for a reasonable return on investment. If they lose confidence in the government, they won't spend or invest. Where do you think consumers get their money? Consumer spending was healthy during most of the downturn, contradicting your theory. Just about every economic downturn in the last 100 years can be attributed to a government screwup. (raising taxes, currency manipulation, overspending, raising interest rates, etc.)