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Tuesday, January 20, 2009 - 12:02pmSanction this postReply
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I hear people say that it was World War II that brought us out of the Great Depression. I have only a surface understanding of this claim. Someone please explain it. Thanks!

Jordan



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Tuesday, January 20, 2009 - 2:11pmSanction this postReply
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I believe the claim is based on two things -- increase in GNP and decrease in unemployment rate.
You can see the former here and the latter here about 35% down the page. GNP counts government spending. Since much of the GNP increase and decrease in the unemployment were due to the WWII effort, is GNP really a great indicator of a healthy economy?

Tibor Machan wrote an article about this here.


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Tuesday, January 20, 2009 - 2:57pmSanction this postReply
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Merlin,

Thank you for referencing that other discussion. It's the mechanism(s) that lead to improved employment rates and GNP that interest me. Bill Dwyer pointed to price controls and wage ceilings as one mechanism. Others pointed to women in the work force and lots of people getting drafted as another mechanism (although I'm not sure that employment increased wealth more than it maintained wealth or just shuffled it around). And I just heard from a colleague that The U.S. emerged as the great exporter post WWII where previously dominant economies were in tatters.

More ideas?

Jordan


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