No sound economist would deny this proposition. And yet Laffer was lampooned, pilloried and grossly misrepresented. This is another way of saying that a good deal of this spending occurs at the lower stages of production, that is, those stages closest to the point of consumption. Yet it is at the higher stage of production that investment needs to be made if real wages for everyone are to be continually raised. This is the kind simplistic nonsense one expects from 'journalists and politicians, not from economists.
Investment requires capital and capital comes from savings.
And savings is what Australia has very little of. Moreover, it is savings in the form of venture capital that most entrepreneurs need to promote invention and innovation. Yet we savage capital gains and interest returns in the name of equity while burdening business with more regulations and so-called social responsibilities. This is why, for example, Britain suffered a brain drain and a loss of so many inventions and innovations. The same thing is happening to Australia.