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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (20529)	11/30/2017 3:05:04 PM
From: TimF	Read Replies (1) \| Respond to of 33421

absolutetly spending always increases over time Thay's the problem. Not so much that nominal spending increases (in an inflationary world this is simply going to happen), but real spending increases, real per-capita spending increases, and to a lesser extent an increase in spending as a percentage of GDP. The USA yearly budget expanded by several thousand percent due to WWII... ...And you know what the US made out just fine. A temporary increase. True some of it was permanent (the spending never settled down to as low of point in real per-capita terms or even a percentage of GDP that it was before the war), but mostly temporary. Also "made out just fine" != "was not a negative thing". Yes the spending for the war effort was important, I'm not saying it shouldn't have happened, but it would have been better if it didn't have to happen. Economists predicted a massive depression in 1949 due to the lack of demand with the cessation of the massive global output of materials for he global war effort. However this did not happen. Exactly.