World War II Was Stimulus On Steroids

Posted: June 15, 2011 in World War 2
Tags: , , , , , ,

ARTICLE WRITTEN BY Paul Abrams PUBLISHED ON HUFFINGTON POST

The next time someone argues that the New Deal failed, and only the Second World War ended the Depression, as ‘proof’ that government spending does not work, one can respond with the details of economic growth and unemployment reduction up to 1940, or one can ignore the claim & thank them for making your case for massive government spending in a deep, broad recession.

Right wing politicians are loathe to credit the New Deal with any success in hoisting the United States out of the Great Depression, but credit World War II for that achievement, believing that that somehow disproves Keynesian economic theory.

That claim, however, undermines their entire premise. [Read More]

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