A great many tents are propped up on the housing tentpole because of the myriad of demands that home construction and repair creates.
You can say the same about free money for niggers. Wow, look, when we give money to niggers, they spend it on stuff, and this results in businesses that exist to get that niggercash!
Wow!
Look at all that ECONOMY. Muh spending! Muh demand! Muh stimulus!
The "tentpole spending" argument is retarded because if you take away the government spending, the assets just get used for something else. The resources used to build Popeye's Chicken don't come into existence because the government spent money down on MLK Blvd. They just got directed there instead of somewhere useful, like a playground or a coffee shop.
If the government doesn't subsidize something, the physical assets just get used on other things. Zero net value is created by subsidies. There are strategic reasons to subsidize something, like not growing dependent on a hostile foreigner for a key resource, but it doesn't make you richer.
I agree with 99% of your post but do think you're a tad optimistic here. Economic recoveries from bubble pops have historically been both painful and lengthy.
Recoveries typically took 12-18 months before the government started intervening with interest rate manipulation. Crashes were sharp, and recoveries were quick. Now we're up to 10+ years to recover. Crashes are soft, but recoveries are slower and slower.
Also because too many members of the upper managerial class would face financial ruin and/or jail time. Can't have that.
That's what I meant by "political suicide." Plus, being seen as not doing anything will end you in a recession.
