Question

what does government spending do?

Answer 1

Spending increase money flow in the economy spending means investment, investment in turn would create job opportunities which would create demand for goods as more people are employed , labor would produce goods and services according to the demand, transaction takes place, one individuals expenditure is another persons income...

Answer 2

The government spends money for a variety of reasons:
•Reduce inequality (welfare payments like unemployment benefit).
•Provide public goods (fire, police, national defence)
•Provide important public services like education and health (merit goods)
•Debt interest payments.
•Transport
•Military spending