Did the U.S. Entrance Into World War II Finally End the Great Depression?

Discussion in 'Politics' started by KenH, Jan 10, 2009.

  1. KenH

    KenH
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    If the answer is yes, then what was World War II in an economic sense? It was a massive public spending program by the federal government.

    Therefore, the lesson from history is that to overcome a severe economic dislocation such as we are again experiencing requires a massive public spending program by the federal government.
     
  2. LeBuick

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    But we're in two wars now, why is the government sinking???
     
  3. Palatka51

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    Duh!!!! Housing and credit. Coupled with the falling dollar.
     
  4. KenH

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    We are not spending money for these wars on tens of thousands of planes, tanks, jeeps, munitions, ships. We're spending a lot of the money for these wars rebuilding Iraq and Afganistan. We are stimulating their economies to a large extent.
     
  5. Palatka51

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    Just like we did for Germany and Japan and look at where they are today. Well it was the Christian thing to do. :rolleyes:
     
  6. JustChristian

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    War is inherently economically inefficient and tends to be inflationary (but not when you're headed into a depression). Think about it. A lot of money is spent to produce no usable output. In fact what we're producing in Iraq is a larger debt for the future as we continue to "rebuild" what we have destroyed.
     
  7. Jim1999

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    The Great Depression in England didn't begin to end until about 1952. That why we came to Canada in 1948. We had nothing in England and we were still on rations. Can you ladies imagine only permitted to buy one pair of ladies dainties a year?

    In fact, Britain just finished repaying its WWII loans from the USA a couple of years ago!

    Cheers,

    Jim
     
  8. LeBuick

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    Too bad they didn't have FDR with the new deal...
     
  9. Jim1999

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    FDR, in my opinion, was a new deal of sorts.

    Cheers,

    Jim
     
  10. carpro

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    LOL :laugh:
     
  11. KenH

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    Laugh all you want, carpro. But the facts are the facts and there is nothing that you laiissez-faire folks can do about them.
     
  12. carpro

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    It's your misinterpretation of the "facts" that is laughable. :laugh:
     
  13. KenH

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    I didn't interpret. I just presented the facts. You may not like the facts but you can't deny them and be a credible poster.
     
  14. Revmitchell

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    Who have you been listening to now?
     
  15. Dragoon68

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    World War II was not proof of some socialistic benefit from massive government spending - it was proof of that our nation's strong capitalist structure was able to rapidly convert our industrial infrastructure and willingly put our backs to the manufacture of what we needed for our warriors to win the war. After the war there was a lot of catching up to do back home from the sacrifices and delays that had been made to accommodate the war effort. Again it was the people and their businesses - investors, managers, workers - that met the demands with their ingenuity, determination, and hard work applied to reap their rewards - profits and enjoyment of the proceeds - that fueled an upswing in the economy. It wasn't anything the government did except to stay out of the way! Socialism - including the Obama version of it - stinks!
     
    #15 Dragoon68, Jan 11, 2009
    Last edited by a moderator: Jan 11, 2009
  16. Jim1999

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    It was socialism that saved the UK after the war and Depression years. The nation was rebuilt when the people were impoverishe. It allowed for medical care, schooling and jobs and the rebuilding of bombed out areas of London. By the way, royalty also played a huge role in that rebuilding, especially the Queen's husband and later Prince Charles, using their own monies.

    I would just as soon do without war.

    Cheers,

    Jim
     
  17. KenH

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    Yes, it was. The government was spending that money to produce planes, tanks, ships, etc.
     
  18. Revmitchell

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    So who have you been listening to?
     
  19. windcatcher

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    Ken, you are so far off!

    Truth be known, we did not 'exit' our depression, either, until into the 50's and in the meantime.... all the spending and war debt brought on inflation.

    Before we entered the war, we were beginning to recover.....gradually............. but economist of that day were already encouraging their philosophy of growth through debt and inflation. The war seemed to answer both because the growth was in the war industry which rose to meet the demands: employment increased as men went to war and those who remained were joined by women called to fill labor positions in industry. The work, formerly headed by men on the farms, was done by the women and children left behind by soldiers going to war.

    War has always seemed to be man's answer to problems in the economy. It's true that it serves serval pruposes... but doubtful that the economic purpose is anywhere nearly as great as most report it to be: War is a distraction and tends to defer the attention of the populace away from local and national issues and problems, to those of nationalism and support. It takes the energies of the unemployed and employs them which interrupts unrest which might formit and congeal into cohesive groups of protest. It reduces populations, more greatly in war zones where civilians get included in the casualty and kill counts..... but also in those countries who supply fighters, who will never return to employment or life at home.

    As we have already seen, the war in Iraq and Afganistan might have appeared to stimulate the economy, which took a strong dive right after 9-11, but, many folks in this last 8 years of economy, were using credit for living while hedging their fortunes and bets and their savings in the financial markets. Within each group and sub-group of the financial markets, those who handled other people's money figured out how to captalize on their commissions and bonus by trading, and hiding losses and under-capitalized debts: They played the futures markets and played the deriviative games with the confidence of con men while feinging the integrity of high priest of financial solidness .... to each other and also to the public. The SEC etc. had not learned the game.... or didn't care... about the lessons learned by the S&L scandals of years back nor the Enron disaster.
     
  20. LeBuick

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    Not to mention Ken, the top income tax bracket in 1944 paid 94%. They called Obama socialist for wanting to raise that bracket 3% to 38%. If 38% is socialist then 94% must be very socialist.

    http://www.taxfoundation.org/research/show/151.html
     

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