the money spending i was referring to came a little later than 1913...during the great depression...the real beginning of government spending to stimulate the economy.
http://en.wikipedia.org/wiki/Franklin_Delano_Roosevelt
if you are "budgeting" for X amount of dollars to be received, and you give the people permission to not give you that money, then you are passively spending it. the key here is "budget". if you are actively incurring a deficit through massive war campaigns AND decreasing taxes for the economically elite then who the hell is going to pay for it? like i said before, any politician talking about deficit reduction is talking out their ass. it is pure political posturing. well, except for clinton, he had a little luck with balancing the budget.
the point still remains, that money is going to be spent. its an economic theory that has been tried and tested.
just some history...the great thing about history is there is no debate about what could be....its already happened..."look to the future but remember the past"