Spending ended Depression

It is a widely held view that World War II marked the end of the Great Depression. During four years from 1941 through 1945, the U.S. sent more than $50 billion worth of material to the Allied Forces. In this period, factories converted from civilian to war production, men went into the armed forces, and women went to work in the factories. By 1945, we had manufactured 80,000 airplanes, 2,500 warships, countless machine guns and munitions.

Is this WWII deficit spending as a cure for the Great Depression any different from proposed deficit spending and job creation today? Except that spending today is for constructive purposes with long-term benefits, such as infrastructure, rather than destructive purposes of war.

If it ended the Great Depression, why won’t it work today?

Kenneth Sessa
Lee’s Summit

Comments

[Daniel Morris/GLOBAL1ADVISORY]

"OR MAYBE WE JUST DON'T TRUST OBAMA"

Daniel Morris of GLOBAL1ADVISORY wishes to state that the comment attributed to us was not made by us but by the following 'commenter' by the name of 'Jim' in KansasCity.com

Daniel Morris
GLOBAL1ADVISORY

[GCYL]

“Except today, we have the "Party of No" in opposition.” – whispering

In 2000 and 2004 we had the “Party of Nothing” in "opposition". Saying no is a form of action. Sitting around a whining about how powerless you are is doing absolutely nothing.

“The "Party of No" didn't even want to pay for resodding the National Mall.” - whispering_to_kc

[Laughing]

You make this sound as if it’s a bad thing. Massive spending. In November 2008 you guys pointed fingers at your opposition and told us how bad unfunded spending was. Remember? Didn’t think so.

[Daniel Morris/GLOBAL1ADVISORY]

DEPRESSIONS AND WARFARE

Historically 'depressions' have been the main precursors to warfare. The fact that World War 11 'appeared' to bring an end of sorts to a global 'depression' is one instance out of many over the last few thousand years.

We sincerely hope that economic and financial decision-makers globally realize that severe recessions and 'depressions' also offer opportunities to create employment by sheer hard work and commitment and a 'can-do' 'will-do' attitude as can be seen by the number of small business start-ups in the 1930's which grew into large corporations. If with a little financial help and encouragement new start-ups can be relatively successful in times such as currently prevailing it does not take much imagination to see where they go when stability returns in the US and globally.

Daniel Morris
GLOBAL1ADVISORY

[Jim]

"Or maybe we just don't trust Obama after two months of lies that make Bush look like an amateur prevaricator."

Please elaborate.

[NoMoreMrNiceGuy]

because the majority of the "infrastructure" is recurring debt taht will have to be paid for with tax dollars again. The jobs such as bridge and road paving are short term jobs that often result in serious cost over runs (12 D.O.T. employees to fill a pothole).
Maybe we should have done nothgn during WWII and stayed out of the destructiveness and allowed the cards to fall as they would have if we did not TCB. Maybe France would be speaking German. Hopefully in the future we start only worrying about America and let everyone else be subject to taking care of themselves.
Spending by consumers and wage earners will solve any economic woes provided that spending is not some dipstick charging up $50,000 in credit on a $30k year job then deciding they can't pay for their stuff.

[Kee]

The party of "NO", ROTFLMFAO...See the argument goes this way....Bush spent a hundred, so now we can spend $100,000!

Guess what Horsey I hope to God their are more "No"s to go around. $3.6 Trillion (yes folks with a T) boggles the mind. Do you realize that BO is spending the wealth that has not even been created by our Grandkids?

BTW FDE prolonged the deprssion until WWII bailed his sorry but out....

Wake up and smell the IOU's people...

[whispering_to_kc]

"It" could work today, just as Kenneth says it might.

Except today, we have the "Party of No" in opposition. The "Party of No", having no problem with blowing $ trillions on weapons or chasing Osama into Iraq (he was never there, by the way), is suddenly only interested in building roadblocks and counting pennies.

The "Party of No" didn't even want to pay for resodding the National Mall.

[Smarter Than You]

Well gee, Kenner, maybe because Bush2 had a record deficit so empirically deficit spending isn't the answer. Or maybe those of us that can conjugate a verb and can utilize the net saw stimuli fail in Japan during the 90's. Or you could take the word of FDR's principle economic advisor.

Or maybe we just don't trust Obama after two months of lies that make Bush look like an amateur prevaricator.

[Smarter Than You]

Well gee, Kenner, maybe because Bush2 had a record deficit so empirically deficit spending isn't the answer. Or maybe those of us that can conjugate a verb and can utilize the net saw stimuli fail in Japan during the 90's. Or you could take the word of FDR's principle economic advisor.

Or maybe we just don't trust Obama after two months of lies that make Bush look like an amiture prevaricator.