Big government can provide the stimulus the economy needs in the bad years as long as surpluses are not squandered during the boom years  Government expenditure is the single biggest tool in times of economic difficulty. Those that are the quickest to complain about taxation and regulation during the good times are also the fastest to rush for a bailout during the lean times. Likewise, those that call for tax cuts in a boom also tend to be the first to criticize a deficit or public expenditure during a recession.  There is in all of this one simple economic reality: the government acts as the banker of last resort.  This only works, as Keynes understood, if the government holds on to reserves in the good years so that it can spend them in the tough ones to stimulate jobs and growth. On the other hand, where surpluses are blown on tax cuts- or expensive wars for that matter- then will be nothing left in the bank and government cannot fulfill its most useful role of using its own financial clout to balance the economy over the course of a financial cycle.  So-called small government Conservatives have been consistently profligate in recent history and have tended to leave fiscally cautious liberals to pick up the pieces. The party of small government never seems to find itself short of billions of dollars for expensive white elephants like the SDI missile shield or asserting American military power overseas in pursuit of yet another doomed cause – whether that’s’ propping up Latin American dictators or settling familial grudge matches in the Middle East.  The military adventurism of the Reagan presidency as well as those of both Bush senior and junior were conducted not just at the cost of domestic social stability, but also fiscal security.  Instead of preserving a budget surplus from the Clinton presidency, the Bush administration spent it recklessly – not, as is widely declared, on the War Against Terror – on tax cuts for the wealthiest in society. As a result Bush, his cabinet and his backers robbed the country of the possibility of reserves when the economy was in a less positive situation.  As far as the War On Terror is concerned, the total cost of two international wars, $1.283tn, stands in stark contrast to the relatively cheap police-style operation that actually caught Osama Bin Laden. It is also worth noting that of that huge sum an entire 2%, according to the Congressional Research service, has been spent homeland security – anti-terror surveillance and enforcement within the USA’s borders [i] .  So called ‘Big Government’, withholding surpluses for a rainy day, provides financial security for American businesses and workers. So-called ‘small-government’ presidents spend trillions of dollars on free money to the super-rich and on military adventurism in other countries and, apparently, in space.  [i] Amy Belasco. “The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11”. Congressional Research Service. March 29 2011.