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QE3 is HERE! Hyperinflation time babyyyyyy
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Samseau Offline
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RE: QE3 is HERE! Hyperinflation time babyyyyyy
(08-04-2013 02:03 PM)CactusCat589 Wrote:  And another fallacy is the suggestion that WWII that got us out of the Great Depression through "massive fiscal stimulus". This is a lie Krugman actively perpetuates. It was the fact we finally liquidated the debt Hoover and Roosevelt refused to and that we finally cut spending that the economy began to recover:

Quote:Likewise, there was a sharp decline in spending after World War II. Beginning in 1946, Congress cut spending for three straight fiscal years. The biggest drop occurred in 1946, when spending dropped by $37.5 billion or about 40 percent (from $92.7 billion to $55.2 billion). That $37.5 billion would be worth $425.4 billion in today’s dollars — making it the largest cut in adjusted dollars.

Actually, WWII did get the US out of the depression, because the entire world's productive capacities were utterly destroyed. Japan was in ruins, Europe in ruins, China in ruins, and Northern Africa also fucked up.

Everyone had to buy their shit from the USA, since we were the last ones standing. American trade rose several dozen billions right after the war ended. That is what created the American middle class more than anything. (Back in 1940, a billion was like a trillion today.)

"To the victor goes the spoils."

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(This post was last modified: 08-04-2013 03:26 PM by Samseau.)
08-04-2013 03:25 PM
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