Message from @toast
Discord ID: 542433719839883292
Of course, the government should always make sure whatever money it tries to fight recession with is actually used for a good purpose
They can be though
Sorry, jumping in here, they actually employed a lot of visual artists
They provide water and electricity
Which wasn't really necessary imo
Oh yeah, the national art foundation and stuff
not necessary
just helped art
But it wasn't what consumers demanded
It was forced by the government
The resources at the time could be used elsewhere
helped consumers though
And making tanks helped consumers too
by protecting the nations
but they didn't demand it
Well
The scarce resources were used in other ways.
Aside from employing manufacturers, it didn't help consumers directly; only indirectly
Yeah, consumers never demanded it. The whole reason an economic system exists is to meet consumer demands
The thing about the spending was that it helped reduce the hoarding of money that had helped contribute to the depression (saving is good, hoarding is not)
Not to mention that the above-market wages forced by the government caused a bunch of people to become unemployed as well
What is hoarding defined as?
Yeah we said that xd
But of course, the war wasn't fought to help consumers; it was fought because of Pearl Harbor and the Nazis
So parts of the New Deal hurt the people who really needed it
hoarding is when saving becomes cyclical
Yeah, it boosted gdp though.
Whoops my bad
Which didn't improve the material standard of living
the war sort of did end the depression
Not at-all
The depression continued until post war
Boosting gdp growth with tanks and warships
Creating almost 0%unemployment isn't actually a challenge when the nations at war and theres a draft.
If every worker was staffed in the army and fleet we'd have full unemployment
and nothing to eat
but also 0 GDP
no production
*plus that debt-to-GDP ratio tho*
0 gdp?
The GDP went up