Sheldon Richman on Why World War II Spending Did Not End the Great Depression


Conveniently for most politicians, writes Sheldon Richman, a popular doctrine holds that government spending is good for the economy. According to this doctrine, when the economy needs to recover from a recession or even a slowdown, an increase in government spending is indispensable‚ÄĒeven if huge budget deficits and a growing national debt result. Keep spending! is the battle cry. 

The advocates of spending think they have a killer piece of evidence: World War II.