What Ended the Depression?

Paul Krugman writes:

The fact is that war is, in general, expansionary for the economy, at least in the short run. World War II, remember, ended the Great Depression.

Of course, the evidence is quite to the contrary.

5 responses to “What Ended the Depression?

  1. when people say that WWII ended the great depression I always wonder what their reasoning is. The only way a war can boost the economy is if the federal government spends a bunch of money to supply the war, so in fact it would be increased spending by the federal government that boosts the economy.

  2. Sure wish I could read the evidence at the link.

  3. Please put up the author and article title.

  4. I agree with Krugman. I couldn’t read the arguments to the contrary (requires log in. – would be interested to hear them)

  5. the reason the war ended the depression was people cold inlist but also the damand for guns and other war machinery was high so factories had to employ alot of people to match this work load

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