Biden: We Can't Recover All the Jobs Lost

[USA_1]

history, common sense, and calculators teach otherwise.



which doesn't mean that there was higher government spending. Government spending dropped dramatically in the mid 1940's after the war was over. Government spending didn't pull us out of sh%t; the fact that the Wartime administration of FDR had a completely opposite approach to business as the "great depression" era administration plus the fact that truman rightly got rid of much of FDR's regulatory state did. Remember that we didn't fully recover until 1955.

but you are right we had taxes, we had to work off all that debt that we'd accumulated from deficit spending in the 30's and during the War. you will recall that the 30's and WWII are periods that are marked (as per your theory) as time periods of amazing economic advancement when people's standard of living increased dramatically. :roll:



nope. you need some basics for a free market to work. rule of law. enforcement of contracts. a relatively stable monetary system. a credible defense. there are 'problems of the commons, such as defense, police, pollution, etc. which the free market is ill-equipped to handle.

but for when it comes to how to grow an economy?

yeah. much better than the idea that the way to build wealth is to go into debt in order to fully fund your congresscritters latest hairbrained scheme.

Free markets and capitalism got us in this mess. It wasn't government spending. The goals of corporations to try to put competition out of business, take advantage of the cheapest labor possible, maximize profits at any cost no matter the consequences and put money over the environment and the good of the country will eventually lead to the downfall of this nation.

It was the massive government spending during WWII and after that built the foundation of industry and helped pulled us out of the recession. The problem is in good times spending should be curtailed and the debt paid down. Then when the rough times come an increase in government spending would not hurt so much. Tax hikes, not raising interest rates should be used to cool down an overheated economy and tax cuts used to get us through the bad times.

Your graph is a percent of GDP. Spending did increase because GDP grew due all the money the government threw into the economy for WWII.
World War II and all the spending had a major impact on the US economy after the war. That can not be denied. We were a totally different country.