Were the theory put forward true, and that is debatable, it would require tax cuts to benefit the lowest paid individuals and the smallest companies. However the political reality is that it never does. Poor people and small companies do indeed spend money which has a stimulating effect on the economy, but spending only stimulates the economy if it is spent in the right way. It is not possible to guarantee that the funds that flow into a state’s economy as a result of tax cuts will benefit that economy exclusively. Most forms of good and commodity now exist within a global market; manufacturing and production have become concentrated within states such as China. Useful and productive business activity will always require that a proportion of a business’s funds be spent overseas.  The advantage of government funding is that it can be directed into the weakest areas of the domestic economy, with a degree of dynamism and control that the markets will never be able to achieve. However, recent history has suggested that tax cuts have tended to be directed to the wealthy and to large corporations who are under no obligation to spend or invest either domestically or immediately.  There is little benefit to any economy in allowing wealthy individual and organizations to further expand stagnant wealth or to invest in high end products bought internationally.  There is also a matter of scale, government has a capacity for borrowing against its own security of wealth that is simply not matched by any private individual or corporation. Equally government is uniquely placed to undertake infrastructural investment such as house building projects which directly supports sectors that are otherwise the hardest hit during times or economic downturn.  Even where tax cuts are directed or fall evenly across all income ranges there is still no control over the areas of probable expenditure and are also unlikely to stimulate sectors such as construction.  Most importantly tax cuts have no direct benefit for the unemployed which, of course, the creation of jobs by government itself does.