Keynes and Texas

Texas took the stimulus money and spent it on jobs.  They lost jobs in the private sector, but gained jobs in the government sector.  That's the way it's supposed to work, and it did.

The same would be true in other states as well, of course, but using Texas as a model to demonstrate Keynesian economics is too rich to resist.

Then, when the economy recovers, private sector employment goes up, and government employment goes back down.  In the meantime, the blow of the recession has been cushioned at least somewhat by government intervention.