Economically, World War II Was Stimulus on Steroids





The next time someone argues that the New Deal failed, and only the Second World War ended the Depression, as 'proof' that government spending does not work, one can respond with the details of economic growth and unemployment reduction up to 1940, or one can ignore the claim and thank them for making your case for massive government spending in a deep, broad recession.

Right wing politicians are loathe to credit the New Deal with any success in hoisting the United States out of the Great Depression, but credit World War II for that achievement, believing that that somehow disproves Keynesian economic theory.

That claim, however, undermines their entire premise.

World War II was many things, and one hesitates to write about it as an economic phenomenon for fear of being misinterpreted as claiming that its economic value was of more importance than its profoundly human dimensions. That is not what this is intended to convey....



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