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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Sdgla who wrote (421)	9/1/2011 6:27:38 PM
From: koan	Respond to of 85487

topics.nytimes.com Yes, go to this mans web site and he has an explanation and a chart. He was also a nobel prize winning economist and 4th most refenced economist in the world. In short here is what happened. In 1930 personal debt was very high. FDR asked Keynes what to do. Keynes explained it and things got better. Then in 1937 the Republicans convinced FDR to cut spending to reduce the deficit and things turned down. Then FDR went back to Keynesian ideas an things got better. Then on Dec 7, 1941 when Japan attacked us the government funded a monster stimulus (WWII) and we had full employment. No one brought up the deficit then-lol! Everyone who wanted to work had a job, men and women. So now everyone could pay down their debt, create businesses consume and pay taxes. By 1950 both individual an government debt was down and the 50's were a time of plenty. Remember as well, when Clinton raised taxes every single Republican voted against it and said it would cause a depression. Instead we had a boom and created 22 million jobs. As Krugman said: "we have crunched the numbers. By the way Stiglitz, also a nobel prize winner is the MOST referenced economist in the world. They crunched the numbers, but uncle Fred probably does not have the eduction to understand them.