I think a recession is exactly the time that governments should step in and spend.
Not only does it boost the economy and create jobs when they are most needed but the government projects (infrastructure etc...) are paid for at depressed prices rather than the boom prices which is ultimately better for the tax payer. Money is cheap right now, it's a good time to borrow.
Nothing pisses me off more than when governments spend big money in the middle of a boom and compete with the private sector, they should operate in the opposite cycle to smooth out the boom / bust effect.