Government spending of the level advocated by Obama will only lead to a handicapped economy riddled with inefficiencies.  The figures alone suggest that the Keynesian theory of increased spending stimulates growth and reduces unemployment is a myth. Despite trillions of dollars of spending from Obama, the US economy is stagnant and unemployment is higher than it was in 2008. [1] This happens for two reasons. First and foremost because high spending levels must be funded by high taxation levels that stifle individuals’ purchasing power and the private sector as a whole. Secondly, government spending generally causes higher inflation, meaning that the net effect of government spending in real terms is negligible, and only makes the system more inefficient! [2]  [1] Powell, Jim: “Why Government Spending Is Bad For Our Economy”, Forbes, 10/13/2011,   [2] ibid