A topic I've been hearing from some of my conservative friends is a refrain often found in mainstream macroeconomic textbooks - crowding out. Crowding out is the theoretical idea that there is a fixed pot of gold from which to finance investment, so if the government all of a sudden wants to draw from that pool, it must mean it has to take funds from the private sector (because there's only so much gold to go around).More on loanable funds versus endogenous money.
Reviving Economics
Crowding Out And Its Relation To Bullshit
Garth Brazelton
