Quote:
Originally Posted by dc_dux
BTW, the "lend-lease" policy of supplying the UK, France, USSR (and other allies) with war materials didnt start until early "41.
To what do you attribute those eight years of pre-war sustained economic growth if not the spending and job creation programs of the New Deal?[COLOR="DarkSlateGray"]
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From the chart you so conveniently provided us there was only 4 years of sustained growth between mid 1933 and mid 1937 and then there was approximately a one year decline between mid 1937 to mid 1938 and then there is a fairly steady increase until the chart ends. I'm very well aware that the lend lease started in 1941 but our European allies was officially and unofficially buying American goods almost from the beginning of the war. The "Battle for the Atlantic" with it's convoys of ships and vital supply lines from the west began in 1939 and lasted until the end of the war. The lend/lease program was a last ditch effort primarily help Great Britain and Russia during a time when their cash reserves was low. On a side note it wasn't until 2005 or 2006 they {Great Britain} finally made their last payment.
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Quote:
Originally Posted by dippin
so it was the collective spending of governments around the world that pulled the world out of the great depression? Yep, still Keynes. Although to be accurate the recovery did start long before WWII.
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I guess you could say that however I don't think the Great Depression affected the world economy like our current banking crisis has. There was a great demand for US goods and we profited with good paying jobs which helped bring us out of the gutter. This time there is no demand for US goods and no wealth flowing in from around the world. Once the trillion or three is spent and we begin paying interest with no money flowing in how long to you suppose Keynes theory will hold up? Keynes theory or not we can't continue to have a negative trade imbalance while shuffling the same money and notes between banks and ever have any hope of sustained growth.