I don't march to the drumbeat of Limbaugh and other Republican shills. But neither do I follow leftist rhetoric. On this one, I side more with Limbaugh. However, I wouldn't say "supposed". That is a subjective term. Rather, I will make this concrete. I do not want the government to create jobs. I believe that society functions better under conditions of liberty in which individuals form voluntary associations.
The profit mechanism serves a vital function by providing signals to society what goods are most urgently needed. In a free society (not necessarily describing ours), entrepreneurs must provide the best products at the lowest cost (i.e. making efficient use of scarce resources) to earn profits. Those best able to do this earn profits and so command greater resources. In this way, a market economy pushes capital into the most efficient hands.
When government commands resources, it does not have the profit mechanism to guide its edicts. Oh sure, people make money. Some people amass great fortunes, as you say, serving government contracts. But these fortunes are not the result of freely set market prices. Rather, they come out of political and bureaucratic processes.
Political pull guides the allocation of resources. Yes, what you say is true. When the government assigns a contract, builds schools or roads; or under takes other projects, economic activity springs up around those projects. But your position seems to be that society would stagnate if the government didn't endorse those contracts. Do you really think so?
In a deep sense, the current crisis is due to just the kind of intervention that you praise. The government has guided economic activity to greater or lesser extents in many industries, and we are reaping the results. People have become rich because they could suck at the teat of government. But they were not producing anything of real value. The market is reacting to economic realities.
You also recognize the "senseless, undeclared war" that is championed by Republicans. I join you in denouncing war. But do you not realize that it is the other side of the coin? You want the welfare state. Republicans want the warfare state. In the grand tradition of compromise, we get both. The same mechanism that guides the economic activity that you want (which I have already argued is a bad idea) seeks and funds war.
In fact, people become very rich from war too. To some people, it is an absolute stimulus. How could you not want that? You praise Boeing. You do know that they make lots of revenue off of defense (sic) contracts. Don't you realize how many jobs are created to wage "senseless, undeclared war"? You should be thanking our wise leaders for promoting war so that we could gain all the advantages of economic activity that springs up around it.
Or we could allow liberty to flourish in our culture. We could let individuals choose the activities that they wish to undertake and the employment that they wish to create.