Monday, February 8, 2010

True or False: ';The best way out of a recession is to enter a war';?

I was just told that by someone. Well, really, he began by saying ';We have a Democrat in office';.True or False: ';The best way out of a recession is to enter a war';?
This thinking is mostly due to the US entering WWII and ending the depression. Its not the best way to get our of a recession or depression, and may lead to unforeseeable consequences due the the cost of the war. After all, defense spending is accomplished by tax dollars. Once the war is over, the burden may be greater. The only country that prospered after WWII was the US. We had the resources to help all the war-torn countries whose economies were ruined by the conflict.





The best way to get out of a recession is to lower the tax burden on the population. We're doing the opposite right now.True or False: ';The best way out of a recession is to enter a war';?
We had a depression after WWI, and three recessions during the Eisenhower administration in 1953, 1957, and 1960, and in none of those cases did we go to war to get out of them, nor were there any government bailouts. In all four cases the government did little to nothing to stop or alleviate them, they just let them run their course, and in all cases they were relatively short lived.
False - the best way out of a recession/depression is to adopt Keynesian economic policies on a massive scale, and in full, as a long term plan.


Shortsighted, short term bailouts and handouts don't really work.
IMHO Surely 'tis better to exit a war ? After ww2 in UK the was a major recession while we paid for our victory in cash after paying in blood.For a few parties your propositition is true but the cost ahh the cost.
The US is already in the war - in Afghanistan! And it doesn't help at all.

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