Steve's barking is the economy like a lungs?

Is the economy like lungs takeing in money and spitting  out jobs?
Do people really believe that urban myth that government borrowing money takes money out of the private sector?  Let's just say my unlearned friends, that government borrowing can and usually does increase the money supply. For you who believe that the money supply is finite I have a bridge that spans the East River that I want to sell you.
What happens to the money that government borrows?A good portion is placed in banks untill actually needed. The money in the banks is then turned around and lent to the private sector, who then puts part of that money that isn't needed into the bank who then lends that money out again, presto the money supply increases, proving once again that public sector borrowing doesn't always squeeze out the private sector.


Warning! This blog hasn't been proof read.