[marsovo]

Macroeconomics is very different from microeconomics. Your spending is my income and my spending is your income. If the government spends a dollar, where does it go?

Presumably it goes to some sort of goods and services. The employees pay income taxes. The businesses pay corporate taxes. And so on.

Similarly, when a business lays off 10,000 people, it's not their problem anymore. Whereas from a macroeconomic policy perspective, "everybody" is the government's responsibility.