How exactly did government spending force non-CRA banks who issued the liion's share of the bad subprime to issue NINJA loans?
How exactly did government spending cause AIG to issue CDS far in excess of its assets?
How exactly did government spending financed by market rate debt offerings cause a decline in consumer demand?
How exactly did government spending force the Ratings Agencies to commit wholesale fraud upon the American people?
Now, I'm not saying the government isn't a fault here. Bush's Ownership Society, his unfunded Medicare D plan, the repeal of Glass-steagal under Clinton and the decade of cheap money under Greenspan coupled with the complex relationship of Dot coms to real estate all played a role here.
Want to explain how reducing spending that will cause a drop in aggregate demand that when coupled with anemic growth will likely cause a recession will lead to more jobs?
As for your 60 cents argument, that frankly makes no sense. If it cost the government 60 cents to collect and spend a dollar, then the deficit should be exceptionally higher considering the spending the government is doing coupled with tax revenues. Did you make that number up from the nether?