[quote=Carl Veritas]How the U.S. got out of the last one might provide a clue:
Abandonment of Keynes inspired FDR policies “coincided” with the recovery of the 1940s.
The reduction of the federal budget from $98.4 billion in 1945 to $33 billion in 1948. Private sector production increased by almost one-third in 1946 alone, as private capital investment increased for the first time in 18 years. (from T. Di Lorenzo)
The bust is the way the economy adjust to the lower consumer demand, by liquidation of poor business positions and lowering of prices to market clearing levels. Government intervention only serves to delay the recovery.[/quote]
Um, in 2939 there was a War, you know?
And in 45? we won that war.
So all that spending was going to end.
The Great Depression was moderated by the FDR policies. The CCC, WPA and other acts got people doing things.
We spent 4 years following Hoovers polcies, that didn’t work. FDR’s policies did.
FDR’s policies also set up 40 years of prosperity.
