His reasoning is good, however not easy for folks to absorb. When we say what the government shoudl spend, we usually don't see the other side of the equation, i.e from whom do they take the money in order to spend it.

Of course in the US federally they get aroudn that problem with debt, i.e high spend low tax. It's only delaying the day when they have to say "since we gave Mr X some money, we need to take it ( plus costs) from Mrs Y"