Stephen McQuade
2008-11-23 16:33:34
“…Unemployment remained very high throughout the 1930s and overall output did not get back to the 1929 level until World War II.”
But why did WWII end the depression? Oh, because government spending increased aggregate demand. That put the unused capacity of the nation to work.
Under serious recession/depression conditions deficit spending is indicated. The problem becomes it is addictive.
