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Why Military Spending Didn’t Get Us Out of the Great Depression by Dr. Robert Murphy
By jbcobb | October 3, 2009
This article is from Dr. Robert Murphy’s blog, Free Advice.
In a thread at ThinkMarkets, the ubiquitous question of WWII spending and the Great Depression came up. I realized that I don’t think I’ve ever succinctly summarized Bob Higgs’ research on this point. (I explain all of this in great detail in my book.)
OK so here is what the limited-government, anti-Keynesian is up against:
Well gee whiz, it sure looks like military spending got the US out of the Great Depression, doesn’t it? Sure, common sense tells you that directing scarce resources into tanks and bombers, and then shipping them oveseas to get blown to smithereens, can’t possibly help the domestic economy. But the figures above don’t lie, right?
Read the rest of Robert Murphy’s article here.
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