Economy is not a zero sum game. Government doesn't (just) spend money on hookers and blow, it educates the next generations of our workforce, builds crucial infrastructure, funds early (commercially unviable) r&d that will power the economy that our kids will work in. That's not wasteful spending that our kids will have to pay for, it's a crucial investment in their future.
Now I believe that the economy is a ridiculously complex, recursive system that we just can't model. Both Keynesians and Austrians latched onto different bits that kind of make sense but neither can guarantee what's going to happen 10 years from now.
Yes,
all government does is
waste capital because it has no
pricing mechanism to perform economic calculation like the market that arises from
voluntary human action.
And it is the Austrian school which makes the assertion that you cannot guarantee things in economics because of human action which is inherently unpredictable. So, you misstated.