It's also worth remembering that america != the world, if you want examples of Keynesian economics working there are plenty of them about - we even have a town named after him in the UK.
On 1/27/06, dana tierney <[EMAIL PROTECTED]> wrote: > afaik it's generally accepted. > > It was not until the United States entered World War II that Roosevelt's > ideas for massive public expenditures and deficit spending truly began to > bear fruit. Roosevelt's administration, of course, had little choice but to > increase expenditures, given the war effort. Even given the special > circumstances of war mobilization, New Deal policies seemed to work exactly > as predicted, winning over many Republicans, who had been the New Deal's > greatest opponents. When the Great Depression was brought to an end by the > Second World War, it was obvious that the turnaround had been caused > primarily by the reinforcement of business through government expenditure. > > In truth, Roosevelt had foreseen from early in his Presidency that only a > solution to the international trade problem would finally end the depression, > and the New Deal was, to no small extent, a "holding action". However, the > intensity of the economic crisis convinced him that before the world > situation could be dealt with, the United States would have to put its own > fiscal house back in order. His original conception was that the New Deal > would restore circumstances which would allow for a return to balanced > budgets and an international gold standard. It was only gradually he came to > the conclusion it was essential to remake the U.S. economy in a more > extensive fashion, particularly because of the "Roosevelt Recession" of 1937, > when he had balanced the budget by restricting fiscal support to the economy. > > Thus, the statement "it was World War II that ended the Depression", while > often asserted by partisans as proof the New Deal "failed" is, in fact, the > view that the architects of the New Deal themselves saw as the reality: as > long as Europe was marching towards war, Japan was engaged in imperial > conquest, and the international debt and trading system were still organized > in an attempt by creditors to be paid back for World War I at pre-war values > for gold, that a full solution to the economic crisis was impossible. > > http://en.wikipedia.org/wiki/Great_depression#In_the_United_States > > >Wow, if that's what you think happened to end the depression, wow. > > > >Umm, socialism in America? WW 2? > > > >That's what ended the depression, one that wouldn't have happened in the > >first place were they truly following models closer to his. The huge over > >rating in the market, the runs. I mean it was almost an entirely artificial > >depression, created to make the rich richer. > > > >Jesus. > > > >Tim > >> > >> It may sound pompous, I dunno. But according to the > >> macroeconomics I learned, the ideas you have been talking about > >> prolonged the depression by perhaps five years. Sure, in the long > >> run the economy would have recovered on its own but as the man > >> said, "in the long run we are all dead." Keynes' ideas were > >> applied and the Depression ended. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Message: http://www.houseoffusion.com/lists.cfm/link=i:5:194722 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
