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This is a short, but very thoughtful, video. | ||
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| Big Stack |
Not so much buying it. WWII vastly stimulated the economy. We were pumping stuff out at a vastly higher rate than before the war. With all the able bodied men fighting overseas, anybody who could work, did. Also, after the war, large amounts of the world were essential destroyed we were the only major power going into the war who came out intact. Because of that, American industry essential rebuilt most of the world, much of which was financed by the US Government under the Marshall Plan. | |||
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fugitive from reality |
I agree. Without the post war economic boom the US economy would have slid back into recession. The rearming of W. Germany in the 50's was in part supported by the fact that our NATO allies needed someone to sell tneir output to. _____________________________ 'I'm pretty fly for a white guy'. | |||
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| Member |
I tend to agree with you both that the war had an effect. WW2 was a short term stimulus that put people to work, but the lasting effect on the economy is what private industry did post-war to grow the economy. As an example, some of plants that were building aluminum clad planes for the war converted their knowledge in aluminum to boat building and created long-term businesses around that industry. The war's effect on the economy was much like a dose of novocaine, temporarily easing the pain of an injury, but the surgery and physical therapy occurred afterward. Had private companies not adapted post-war, then we would have slipped back into depression. I think this is what the professor is saying. . | |||
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| Member |
More than that, we adopted a doctrine that said the US would patrol the world seas, guaranteeing safe passage for other nations to trade with each other, free from the threat of piracy. This had a lot to do with world's emergence economically post WWII. . | |||
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| I believe in the principle of Due Process  |
The Marshall Plan was a good idea, too. Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
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Info Guru |
The US government was paying those soldiers and buying the goods. So, if that works, why not have the government pay millions of men and women to go camping in the Rockies - feed and clothe them and buy all of the output of Ford, GM and Chrysler? If that fixed the economy, why not do that full time? “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence.” - John Adams | |||
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| Big Stack |
Even if you talk to Kenesian economists, they don't call for continuous, never ending deficit based "pump priming". It's supposed to be a temporary thing to boost the economy when it's stalling out. In that way the spending on WWII was a good example of that. It got the economy going, and, combined with the pent up demand both domestically and around the world, set us up for a good 25 years of running prosperity (where the government could then run a surplus.)
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| Info Guru |
I get that that is the theory, so why not do that in 2007? Just announce that the government is going to hire 5,000,000 people who have jobs and pay them to go camping off the grid in the Rockies while simultaneously buying the full output of the US car manufacturers plus significant buying of other goods to supply the millions camping in the Rockies? If that is what pulled us out of the Depression, then just do it whenever the economy stalls, right? “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence.” - John Adams | |||
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| I believe in the principle of Due Process |
Deficit and debt, year by year. https://www.thebalance.com/us-deficit-by-year-3306306 Luckily, I have enough willpower to control the driving ambition that rages within me. When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson "Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown | |||
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Member |
Author Christopher Chantrill has written extensively on the U. S. economy, starting with the WWI era and continuing. Good reading, but a lot of data. His two sites (that link together): U. S. Stuck on Stupid Road to the Middle Class And if you want to get really depressed, using the government's own figures: U. S. Government Spending You can't truly call yourself "peaceful" unless you are capable of great violence. If you're not capable of great violence, you're not peaceful, you're harmless. NRA Benefactor/Patriot Member | |||
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| Member |
Exactly. . | |||
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| fugitive from reality |
It doesn't work that way in the long run. Too much stimulus causes inflation, increased taxation, and finally stagflation. _____________________________ 'I'm pretty fly for a white guy'. | |||
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| Big Stack |
The Fed did it in other ways (dumping cash into the economy, buying all sorts of debt/bonds at inflated prices.) Sound different buy was the same thing. They also cut the SS tax. And does the term "shovel ready project" mean anything to you?
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| Big Stack |
That's why the Fed will pull back on the leash when they see it starting to happen. Notice that interest rates are going up now?
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| Info Guru |
Yes, that is exactly my opinion of Keynesian economics!!  This is a good article explains more in depth than I can get today: WORLD WAR II AND THE TRIUMPH OF KEYNESIANISM Also, can never pass up an opportunity to share these videos with anyone who may not have seen them: “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence.” - John Adams | |||
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| His diet consists of black coffee, and sarcasm.  |
Not all of FDR's "New Deal" was bad, for example, the Civilian Conservation Corps. But neither it nor any of the other programs actually got us out of the depression. And the CCC in particular wouldn't work today. Construction isn't done any more by hundreds of guys with shovels, it is mechanized and professionalized, with a few guys running heavy equipment. | |||
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| Muzzle flash aficionado  |
My dad was one of the CCC workers back then (before he married my mom). Unfortunately, I don't know anything about where he worked or what projects he helped build. flashguy Texan by choice, not accident of birth | |||
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| Member |
"Shovel Ready" was more Keynesianism. It doesn't work.
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| Big Stack |
I don't know about that. The Fed threw all it's Keynesian tricks at the 2008 recession. It never got to be a full on depression, and GDP recovered much more quickly than in the great depression.
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