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The boom that followed WWII was the result of Europe and Asia being left in smoldering ruins while the US was untouched. Our munitions, airplane and tank factories were quickly converted to build refrigerators, washing machines and automobiles. If you were an able-bodied man, they were hiring because Rosie the riveter quit as soon as the men returned. It took another twenty-six years for these bombed-out allies and enemies to overtake us once again. 1975 was the last year the US was a net exporter.
But why people bought those appliances and other products? Why today people are reluctant to buy or invest, even if they have more money then in the 50s? And don't forget, those were cold war years, with lots of uncertainty.
But why people bought those appliances and other products? Why today people are reluctant to buy or invest, even if they have more money then in the 50s? And don't forget, those were cold war years, with lots of uncertainty.
Because America isn't the baddest/hippest thing on the planet anymore.
How can you deny it? Infrastructure spending created markets for private sector expansion. Suburbia is a product of government spending.
The private sector created the post war economic boom. It was created by consumer product and housing demand. Suburbia is a product of THE AUTOMOBILE. Citizens, due to increased mobility, were able to live away from thier jobs and commute. The consumer demand for housing, autos, and household appliances drove the post war economy. Bill Clinton removed the manufacturing driving componant through NAFTA and China most favored nation trade status.
Where do you get this stuff?
By the way, your hero of Keynesian economics, Stiglitz, states that federal spending is perfectly fine until one reaches the "tipping point" of debt eqaul to GDP. At that point, he has no solutions, as the "growing the economy to take care of the debt" solution no longer applies. We are at that point. Further, Stiglitz (only two years ago) notes the examples of Keynesian success as Italy, Greece, Spain, and Portugal...................................... and you guys listen and believe in Keynesian economic still.
To the OP, if you actually read "The General Theory of Employment, Interest and Money," you'd realize that Keynes advocated SAVING during boom times and spending during recessions. So seeing as how we had a -2% savings rate during the 90s-early 2000s, and ran deficits, there is no logical comparison to be made. We are driving ourselves off a cliff, not spending ourselves out of recession.
So what explains the rest of the developed world rebuilding itself several times over since the "caught up with the US"? I suggest it was our upper crust living off money lent to these people while allowing our factories and infrastructure to disintegrate. They mined the US for profit while investing in our enemies. IMHO that is treasonous.
We need to impose corrective tariffs to provide a level trading field while rebuilding our infrastructure with American steel made form American ore by American workers in Mills financed by American money. We can kiss the world goodbye, except for oil, until we start growing it or making it out of the coal we stopped wasting in electrical power plants.
This can all be done by deficit spending and highly progressive tax structure. It is possible but unlikely so long as the financiers control our government.
So what explains the rest of the developed world rebuilding itself several times over since the "caught up with the US"? I suggest it was our upper crust living off money lent to these people while allowing our factories and infrastructure to disintegrate. They mined the US for profit while investing in our enemies. IMHO that is treasonous.
We need to impose corrective tariffs to provide a level trading field while rebuilding our infrastructure with American steel made form American ore by American workers in Mills financed by American money. We can kiss the world goodbye, except for oil, until we start growing it or making it out of the coal we stopped wasting in electrical power plants.
This can all be done by deficit spending and highly progressive tax structure. It is possible but unlikely so long as the financiers control our government.
Do you realize that tariffs will raise the price of goods in this country?
Yes, but they will also provide a protective wall and greatly increase the number of employed while increasing wages enough to pay the higher prices. The only harm would be the reduced profits being invested overseas. The results would be higher pay for workers and lower dividends for investors. That is not a bad exchange of prosperity.
Easy it was the pre-WWII debt pay down that lead to the post WWII economic boom. In short it was the pent up demand from the frugal living in the great depression that lead to the post WWII boom also it was the relatively high wages. Particularly at the bottom of the pay scale.
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