Keynesian economics - Wikipedia, the free encyclopedia
The government will more than recoup the money spent via taxes from additional employment etc. To be honest, I think this is the first sensible decision taken by this government with regards to the deficit etc. - we need to be stimulating the economy, not choking it.
The problem is that large scale national economics is still an unsolved problem and no-one actually knows how to fix it/predict it after a couple hundreds years worth of data on the topic. All the more reason to spend the money on rebuilding the schools, stimulate the economy and train the economists to actually work this stuff out!