***Was it not massive government spending arming the nation to fight World War II? Is that not the equivalent of a massive works program? Does that not show that massive federal spending will move the economy?***
We could get GDP really high and unemployment really low by having everyone dig holes and fill them up again. Would we be any better off? War spending boosts production, but not for things consumers want or need. The standard of living is worse when resources are diverted to destructive ends (war). It may be necessary to fight a war, but that should not be confused with saying war is good for the economy.
Well it worked for Cool Hand Luke.