The Great depression was reversed by War.
The Recession that began with LBJ was caused by excessive governmental borrowing That crowded out capital for private investment and spurred inflation.
The Nixon recession was not reversed by wage and price controls or spending and became more inflationary under Gerald Ford.
The Ford recession was not reversed by his Whip Inflation Now policies which did not respond to targeted spending and voluntary prce controls.
The Carter Recession turned into stagflation after a spending spree.
The Reagan recession was reversed with spending cuts, restrictive monetary policy and major tax cuts.
The George H.W. Bush recession was created by tax increases and increased spending.
The Clinton recession was created by a stock market bubble and reversed by Bush tax cuts.
The Bush recession was created by runaway spending and the bursting of the housing bubble.
WHERE IN AMERICAN HISTORY CAN WE FIND AN EXAMPLE OF SPENDING OUR WAY OUT OF A RECESSION INTO PROSPERITY? IS THIS SOME KIND OF KEYNSIAN WISHFUL THINKING?
The WWII spending was significantly financed by lend-lease which actually had foreigners buying our products and then followed by a period reconstruction where we also exported an extraordinary amount of goods and services. It was not domestic spending that reversed the Great Depression. FDR Treasury Secretary Henry Morganthau is famously quoted as saying that the New Deal spending was not working and that he feared there would not be enough money in the world to make it work.
I don’t care who you blame for the stock bubble or the housing bubble. There is plenty of blame to go around. The question now is how to get out or at least not make it worse.
For the record, Krugman is not even a trained economist for the record and his Nobel Prize was largely motivated by the politics of a world that was angry at Bush. Of the economists know and read (including the Magazine "The Economist"), most of them do not take Krugman seriously.
You need to read a different book. Seriously, read a biography on Morganthau and how tortured he was that what should have been working was failing and that he was at a loss to explain it and fearful that credit to the US might dry up for the continuation of the "experiment".
Check Bureau of Economic Statistics for 3rd and 4th Quarter 2000. You will find it there. Get back to me if you don’t. I checked it this morning before I wrote the question. It will be in the column "revised".
Matticus Part II,
Wars open markets, train men, create pent up demand for consumables do to war effort shortages and leave in the wak of their destruction economic opportunities inhe form of literallly and metaphorically rebuilding countries who were devastated by War. I am recommending war to rebuild our economy, just explaining to you what I was taught in Economic History at Stanford University. So far as I know, this is still the common view of economy and war.
You’re right about Krugman he does have a PHD in economics. I stand corrected.
yeah and they would spend more if they could….just more goverment jobs created