If the government had boosted unemployment in 2008 along with more stimulus we would have gotten closer to full employment before early 2020.
I cannot think of a single bad consequence that happened in 2008 because the government spent too much. Is the gesture to the fact that all the banks didn't totally implode?
Whether a government engages in stimulus is orthogonal to whether it engages in aggressive monetarism. It is, in fact, possible to increase expenditures without tanking the global reserve currency. Indeed, the two are at odds so long as we rely on deficit spending, since our willingness to tank the dollar's value on a whim lessens others' desire to loan money to us denominated in dollars.
Furthermore, our demonstrated willingness to devalue our debts undermines our moral high ground when we criticize China for its exchange rate manipulation, and makes China less likely to set much store by our financial ties, freeing them to take more aggressive actions... as we've seen since 2008 by its actions in Hong Kong, the South China Sea, and Taiwanese airspace.
