My New, New Deal for the economy.

[steven787]

Jackson50 said:
To say the war ended the Great Depression is ill-founded. It reminds me of the broken glass theory. In fact, government spending on the war effort actually made life worse for Americans. It led to a shortage in many resources. No, it was the end of the war that brought about the end of the Depression. The end to rationing and the influx of cheap labor, amongst other things, gave rise to conditions that were ripe for an economic boom.

I would also disagree that the New Deal ended the Great Depression. I would say that it prolonged the Depression. If you truly think there will be a depression, the last thing you should advocate is to copy the policies of Hoover and Roosevelt. The cause of our current economic turbulence is the same thing that caused the Great Depression...the inflationary monetary policies of the Federal Reserve.

 

 

You are not the only one who thinks like that.  There are people who say the GD really ended at the end of the War.  Because Supply finally met Demand again.

Most economist don't think like that; they would say that a shortage is better than the deflation of the GD. (U.S. at home in WWII, I use healthy very loosely.  It was hard on people.) 

The attitude changed after the attack on pearl harbor.  Instead of the fear that the fragile economic gains might be lost, there was a fear of attack and an uplifted mood as unity and patriotism replaced the bickering over economics and foreign policy from before.