China also spending billions to stimulate the economy. But wait...

[Tispower1]

NJ5 said:

Tispower1 said:

Suppose so, I guess that's why the depression ended with WWII, because people were forced to spend, albeit it was on warfare not for the good of the people.

 

A war can give an economic boost, but not a good one. War spending doesn't create much useful infrastructure or future wealth, even if it creates high GDP and employment. Similar to make-work jobs:

http://en.wikipedia.org/wiki/Make-work_job

 

 

I guess that's why it's so hard to work out how to grt out of recession.