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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (181589)	12/3/2009 1:01:23 PM
From: koan	1 Recommendation Read Replies (2) \| Respond to of 362997

We are talking Keynsian economics taught in most universities in the world. John Maynard Keynes predicted the great depression, the effects of humiliating Germany in WWI and was considered "the" economic genius and the intellectual equal of Einstein and Bertrand Russel. Ran around with English intelligencia. With all due respect tejek, you need to brush up on your economics. It seems everyone makes the same mistake regarding WWII. It was not the war that pulled us out of the great depression it was the size of the stimulus made necessary by the war. It would have been much better for the country if the stimulus money would have been spent on infrastrucure. But full employment is what did it. Here is how it worked. Starting in 1932 individuals had huge debt and government had small debt. FDR created 8 million jobs and did other things to help the jobless, so personal debt started coming down. Then in 1937 the right wing (always the right wing) talked FDR into tighening and the economy took a down turn. Why the fed is trying to not repeat that mistake. Then in 1941 WWII forced full employment. Men in the army and women working in the factories. With full employment government debt exploded, but personal debt started to fall dramatically. As people got money and paid down their debt they also paid taxes, started new business and so government debt started coming down. Until by 1950 both personal and government debt was quite low and our economy in very good shape.