I will double check those numbers. I have never seen thsoe numbers before, but they look legit. Keynsian stimulous was nto implemented ntil 1937/8.
But in any event, WWII created full employment and allowed people to pay off their debt and start new businesses.
""Pearl Harbor, December 7, 1941.
A. Roosevelt's New Deal recovery programs were based on various, not always consistent, theories of the causes of the Depression. They targeted certain sectors of the economy: agriculture, relief, manufacturing, financial reforms, etc. Many of these programs contributed to recovery, but since there was no sustained macroeconomic theory, such as that proposed by John Maynard Keynes, total recovery did not result during the 1930s.
Following the 1937 recession, Roosevelt finally adopted Keynes' notion of expanded deficit spending to stimulate aggregate demand. In 1938 the Treasury Department designed programs for public housing, slum clearance, railroad construction, and other massive public works. But these were pushed off the board by the massive public spending stimulated by World War II. Even after 1938 private investment spending (housing, non-residential construction, plant and equipment) still lagged. It was war-related export demands and expanded government spending that led the economy back to full employment capacity production by 1941.
Close Window |
