Sure, the economy in America seemed to stabilize, but the other countries involved in the war fell into their own economic hardships. I'm wondering why war only helped America, but no one else.
As nichodemus said, no battles were fought in America. The other reason is everyone who wasn't fighting was at home working in the millions of jobs created to support the military. Of course in the long run that would come back to hurt the US.
As it is, though, we must remember that war is the destruction of lives and resources alike. Imagine all the materials and lives we would still have if we hadn't gone to war. Even if we assume war did bring the U.S. out of the Great Depression, look at the cost.
The war cost both lives and resources yes, but also brought the US great economic power and the baby boom. I'm not saying the war was a good thing, but at the time it did significantly help the US.
Sure, the economy in America seemed to stabilize, but the other countries involved in the war fell into their own economic hardships. I'm wondering why war only helped America, but no one else.
Given how much more reliant we all are (the whole planet) is on a more globalized economy, I'm sure if such events replayed this wouldn't be the result.
The war cost both lives and resources yes, but also brought the US great economic power and the baby boom. I'm not saying the war was a good thing, but at the time it did significantly help the US.
Was war necessary to helping the US, or do you believe it would have been possible to end the Great Depression and prosper without war?
Was war necessary to helping the US, or do you believe it would have been possible to end the Great Depression and prosper without war?
I think we could have gotten out of the Great Depression without war, but it would have been much harder. As was shown during the war, we had the capability to build our economy, the only question would be how long would it have taken to realize that without the war.
Sure, the economy in America seemed to stabilize, but the other countries involved in the war fell into their own economic hardships. I'm wondering why war only helped America, but no one else.
The War caused capital flight from Europe and to some small extent other areas of the globe. Modern portfolio theory suggests that maximizing relative risk-adjusted expected return drives the choice between domestic assets and foreign assets (flight capital). The domestic determinants of relative expected return include risks, capital productivity, and their underlying determinant, notably the macroeconomic environment. Hence, simply put, investing your money in Europe was crazy risky, you could lose your money in a blink of the eye, so a lot of people invested somewhere else: mainly the U.S.A. Now, adding the gold standard of that time, the flight to safety caused substantial gold flows to America. The Treasury Department used that gold inflow to increase the money supply. The result was an aggressive monetary expansion that effectively ended deflation. Due to this monetary expansion, real interest rates fell precipitously in 1933 and remained low or negative throughout most of the second half of the 1930s. These low real interest rates are closely correlated with a strong rebound in interest-sensitive spending. Thus, from 1933 to 1937, real gross domestic product grew at an annual rate of almost 10 percent, and unemployment fell from 25 percent to 14.
Now, adding the gold standard of that time, the flight to safety caused substantial gold flows to America. The Treasury Department used that gold inflow to increase the money supply. The result was an aggressive monetary expansion that effectively ended deflation. Due to this monetary expansion, real interest rates fell precipitously in 1933 and remained low or negative throughout most of the second half of the 1930s. These low real interest rates are closely correlated with a strong rebound in interest-sensitive spending. Thus, from 1933 to 1937, real gross domestic product grew at an annual rate of almost 10 percent, and unemployment fell from 25 percent to 14.
Yes, apart from this, I forgot to mention the Bretton Woods system that was only allowed to come into form after the war. The war made it possible, and ended the idea that autarky and currency wars were the way forward.
Please tell me that isn't your only reason for saying JFK was the best president ever...
Fun Fact: People were worried that JFK would follow whatever suggestions the Pope would make, because of his Catholic Religion.
(overcoming this kinda gives him a higher slot on the good/bad president list)
Another Fun Fact: The 2-term/10 year limit for time in the office of the President was officially made law after FDR died during his fourth term (before that it was a tradition.)
p.s. using the above, I wouldn't be surprised if someone compared FDR to Darth Sidious (both went over the standard limit during a war)
That's completely sidestepping the point. He never did make a move to consolidate his rule into anything that was remotely a dictatorship. Granted, he died halfway through, but he still let himself be constrained by Congress. Sidious never did, but steadily increased his powers.
The force comes from the midichlorian life forms, don't ask how it works.
I'm a bigger Star Wars fanboy than you think I am. It was only introduced as a concept in Episode I, which was what enraged most of the older folks as it seemed just a biological accident and coincidence, compared to the spiritual connection many perceived it to be.
Would you rather I made references to the Doctor?
None, unless really necessary as it just goes offtrack.
