[caseysoftware]

> Surely during downturns you want to government to step up spending to stabilise the economy

That model might work if they cut spending during good times.

As is, the modern government spending model is that they (almost) constantly increase whether things are going well or poorly. Then the next time there's a downtown, government spending as a portion of the (shrinking) economy is a higher % and therefore it takes more to "stabilize" it this time around.

Think of driving down the road. If it's a normal straight road in good weather, you minimally adjust the wheel back and forth and if something happens, you have many degrees of freedom and even momentum pointing you in the right direction.

Now think of a road at night in a storm with lots of curves. As you tighten your hands on the wheel and steer back and forth, things are quite a bit different. The direction you want to go now vs 10 seconds from now are a little different. And a disruption - however so small - may need a bigger reaction to avoid and a bigger after-reaction to recover. Momentum can easily work against you.