Message from @sɪᴅɪsɴᴏᴛʜᴇʀᴇ
Discord ID: 533780587614568472
(hoarding of money)
The depression didn’t end there
It continued until the 40s
unemployment was still damn high
Yes
if anything FDR continued it
Alongside Hoover
guys if we had communism
It took the biggest government stimulus in history to end the depression
World War II
They both had the same Keynesian policies
WW2 didn’t end it either
It did though
literally no one would be unemployed
wtf
oof
Incomes fall profits wall wages fall
Just have the government buy everyone as slaves
No
No one unemployment
Not artificial
which is healthy
Which still causes wages and incomes to fall
“Hoarding”
Saving
But even then
That’s a myth
90% of the time deflation didn’t result in anything
Not really visitor
Cost cutting
and greater efficiency
Many other things less to deflation
Greater efficiency and cost cutting is good individually
But it can result in a drop in money circulation
interventions in the wartime economy, war materiel was valued incorrectly and therefore the GDP data overstate economic conditions. Moreover, conscription and arms production gave a misleading employment picture. Instead, Higgs argues, the war was a period of capital consumption rather than capital accumulation. Tanks, bombs, and helicopters have limited uses outside of military applications. The labor that was used to produce them was not available to produce consumer goods and services; in fact, people went without consumer goods.
If the money circulation drops naturally
It’s not bad
And that’s not always the case
But the money supply will fail to meet demand