During difficult economic times, I do believe that stimulus spending can re-energize certain sectors of the economy. While it is not a fool-proof strategy, sometimes stimulus spending is a necessity when private dollars are not being spent at the rates needed to maintain a healthy economy and generate activity in the financial markets.
Stimulus spending does work. There is no doubt about that, as you can point to specific cases around the country that continue to prove that stimulus spending is creating real jobs and employing real people to do work, whether on roads, trains, whatever. That being said, not every town or community is going to see new jobs in their own area from stimulus spending. The money only goes so far, so it has to be used where it can do the most good. People can't expect that stimulus spending will create new jobs in every constituency. It just doesn't work that way.
Although there are obvious negative effects to stimulus spending such as a huge sum of money being spent with many ramifications, stimulus spending has been shown to work in various cases such as the U.S. auto bailout. As long as there is proper oversight and effective planning, stimulus spending helps a situation in which an industry is suffering severely and has little hope of recovering without third party help.
I personally do not believe stimulus spending works in the long run for the economy. Americans received stimulus packages not too long ago and I have seen no benefit to our economy. If anything, it has taken a serious downward turn. The cause isn't solely because of stimulus spending, but it is a contributing factor.