Government Can't Fake Labor, and it Can't Fake Capital
These are just two important principles: you cannot fake either labor or capital. Eventually, whatever you fake them with will undermine enterprise.
For example: years ago, my father hired a person as a telemarketer for his business. She lasted 3 days. After her training, she spent every day "calling" without actually talking to people. Eventually my father discovered that she was not doing her job. It's an extreme example, but imagine if my father could not have fired her! He would have been paying someone for doing nothing, something he definitely could not afford. He would have been investing money in something with zero chance of return and would have been in extreme financial danger, as his business depended on effective marketing.
We cannot fake capital either. Government spending money it does not have always has repurcussions: under the best case scenario, over-spending would be "compensated" for by inflation, therfore reducing the value of our dollar and the power of our savings accounts, the main idea is that the spending will spur the economy on long enough so that the private sector can get back to business and provide real growth, so that any inflationary problems are diluted by market growth. Under a bad sceanrio, however, spending does not kick-start the market growth, and can crowd out the genuine capital, making the economy even more anemic than it would have been pre-spending.
The bad scenario is what we have now. IMO it is partially due to a failure to spend money on those "shovel-ready" projects, combined with a failure to ease the pressure on businesses so that they can invest in their own growth. In other words, the government spending money it does not have always relies on the market to help it play a game of catch-up, but when the market does not respond proportionately, then we're are even further behind than we were before the spending started.
Mitt Romney's campaign theme is "We have a moral responsibility to not spend more than we take in." This is always true, but today, it is even more painfully urgent and important. To use an analogy, it's as if I used a credit card to spend more than I have, which is already bad for my budget, but instead of maybe using it to pay for some pre-sale home improvements or to fix my car so I can continue my delivery business, I use it to buy fast food. That's not only bad for me, it's really, really bad for me, and my budget.
It's time to focus on some good old economic common sense. We cannot make gold appear out of thin air, and we cannot fake labor or capital.
The most pressing social issue today is the economy