with the exception of Jwpegler, most conservatives will admit that government spending for WWII drove economic growth.
What's funny is they mention this as a reason why socialism does not work. What happens is they misread - or Limbough mistold them - that FDR's programs did not get us out of the Depression only WW2 spending did.
Well that proved uber socialism (for a short period until recovery sets in) kicked started the economy and that half measure socialism just kept us afloat - but that goes over their head.
All of the evidence shows that you are correct. The economy was in worse shape in 1938 than it was when Roosevelt took office in January 1933.
Sure WWII finally got people busy. Busy building bombs, tanks, and submarines. Did that make us wealthier? No. The country had to go into massive debt to do it. That deficit spending was unsustainable, just like government deficit spending is unsustainable today.
After WWII, the Keynesian Kooks tried to convince Truman to keep the war time economy going. They told him to build tanks and planes and park them in the desert.
Truman told them to shove off. Over the next three years, Truman cut government spending by 60% -- from 52% of GDP to 20% of GDP. According to g065, this should have collapsed the economy and put us into a even worse depression.
Instead, the private sector responded by creating products and servers that people wanted to buy to improve their lives. Yeah, economic activity was largely flat for those 3 years, but we were quickly transforming from an economy that built tanks and bombs to one that built houses, televisions, and dishwashers.
Truman saved this country. Not Roosevelt. Roosevelt nearly destroyed it.
According to g065, this should have collapsed the economy and put us into a even worse depression.
There was a nearly one year recession between 1948 and 1949 from which the economy barely recovered. During this recession, the Gross Domestic Product of the United States fell 1.7 percent. In October of 1949, the unemployment rate reached its peak for the cycle of 7.9 percent. It took an outbreak of hostilities in Korea in 1950 to REALLY work off the excess labor pool and to get industry REALLY moving again.
There was a nearly one year recession between 1948 and 1949 from which the economy barely recovered. During this recession, the Gross Domestic Product of the United States fell 1.7 percent. In October of 1949, the unemployment rate reached its peak for the cycle of 7.9 percent. It took an outbreak of hostilities in Korea in 1950 to REALLY work off the excess labor pool and to get industry REALLY moving again.
As i noted i post #32, we had negative GDP in 1949.
