Goverment Spending Cannot Create Jobs

I've long believe that John Maynard Keynes was wrong and that government spending during an economic downturn has no net effect on economic performance. I studied Keynes in graduate school. I could regurgitate his ideas well enough to get a passing grade but they never really made sense to me. This link has a good (non technical) explanation why.

The money quote, "Keynesian economists counter that redistribution can increase demand if the money is transferred from savers to spenders. Yet this “idle savings” theory assumes that savings fall out of the economy, which clearly is not the case. Nearly all individuals and businesses invest their savings or put it in banks (which in turn invest it or lend it out) — so the money is still being spent somewhere in the economy. Even in this recession, with tightened lending standards, banks are performing their traditional role of intermediating between those who have savings and those who need to borrow. They are not building extensive basement vaults to hoard cash."