Prove it wrong you wingnuts
Paul Krugman brings joy to my life. Can this man get any more comical? He calls 1940 a miracle. Hysterical!
Broken windows, war.
There is an excellent article I have seen called The Election of 1946, but I can’t find it after searching Mises and Google. It explains that the election of 1946 was a rejection of the New Deal. Those policies were ended, and that laid the foundation for growth. The return toward capitalism after the war is what ended the Depression, not WWII.
Krugman seems to be longing for a good 'ol World War to end this depression, or at least to find a way to convince the public to spend $30 trillion.
It is a waste of time to argue against Krugman. He is the Ph.D., the Nobel Laureate, the one who possess the high I.Q., the editorial writer for the NYT. We are lowly forum dwellers who merely understand fundamentally sound economics. We speak a different language.
I would like Jonathan’s take on this, since he wrote an article about the recession of 1937.
I dont know about the election of 1946, but there is an excellent article called ‘The Great Depression of 1946.’ that explains how not only were all the mainstream(Kenseian) economists of the 1940’s expecting a return to the Great Depression after WWII, but by most standard economic measures we actually did. And then goes on to explain how 1946 was actually the single most prosperous year in US history. Its here:
SirThinkALot,
This article is along the same lines as the one I had in mind, ie, it was the restoration of market processes after the war led to recovery, not the war itself. Thanks for the post.
I just figured America made it out great after the war because we were the only major country who wasn’t blown up. The best place the destroyed countries could go to get materials for rebuilding was the U.S.- of course we’d benefit greatly from that.