"Everywhere government spending is presented as a panacea for all our economic ills." No, it's not. False premise
"it has become part of an intricate network of fallacies that mutually support each other." - I would argue the exact same thing applies to Supply Side Economics as policy. In fact, both Reagan AND Bush used it as such. Re-iffication again.
"Everything we get, outside of the free gifts of nature, must in some way be paid for." No **** Sherlock. Really?
"They tell us that the government can spend and spend without taxing at all; that is can continue to pile up debt without ever paying it off because “we owe it to ourselves.” YES - that is incorrect. We need to pay our taxes and pay for that which we have agreed is worth having. Things like potable water, edible food, safe working conditions, defense of borders, NASA, ya know.
Govt spending DOES carry benefits however. National highway system comes to mind. Internet comes to mind. Pharmaceutical research comes to mind. The list would be VERY long if pursued.
"They will have that much taken away from them which they would otherwise have spent on the things they needed most."
NEEDED THE MOST ??
This TOTALLY ignores the well-trod path of the Ripple Effect which I as an economic development was well aware. There are economies CREATED by large-scale infrastructure projects
https://www.wm.edu/as/publicpolicy/documents/prs/aed.pdf
http://mediamatters.org/blog/2013/08/06/wsj-pretends-public-infrastructure-spending-has/195249
Time for Chiefs Kingdom - see ya