The assumption that public consumption is not expansionary is amateurish. A simple counterexample: wages in public education sector, i.e. INVESTMENT IN HUMAN CAPITAL, are classified as public “consumption”.
This simple accounting fact, routinely ignored in the debate, contributes to the explanation of these apparently “counterintuitive” results: sciencedirect.com/science/articl…
Another point is that, regardless of what most pre-Keynesian economists believe, demand and supply are NOT two distinct and separate worlds. Demand feeds back into supply, with some consequences: tandfonline.com/doi/full/10.10…
