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.
The economy was in worse shape in 1938 than it was when Roosevelt took office in January 1933.
The recession in 1937 was the result of Roosevelt yielding to Republican pressure to reduce deficits, balance the budget and cut spending. (Gee whiz, where have I heard that before?)
When it became clear that wasn't working, Roosevelt increased spending for relief and public works with an additional $5 billion.
As go65's numbers show, the economy quickly recovered.
The recession in 1937 was the result of Roosevelt yielding to Republican pressure to reduce deficits, balance the budget and cut spending. (Gee whiz, where have I heard that before?)
When it became clear that wasn't working, Roosevelt increased spending for relief and public works with an additional $5 billion.
As go65's numbers show, the economy quickly recovered.
Maybe you'll have better luck getting through to jwpegler than I.
So Obama should send us all a one hundred thousand dollar check to stimulate the economy. I'm still waiting.
the best way to stimulate the economy is to get money into the hands of those who will spend it - by suspending payroll taxes for lower income earners, spending in infrastructure to create jobs, or rebates to low income wage earners. Cutting taxes on those who earn over $250k a year has very little stimulative effect on the economy.
Remember Ronald Reagan? He called the earned income tax credit, which paid money to the working poor "the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress."
