Comment 75890

By iamjoe (anonymous) | Posted April 12, 2012 at 23:49:56 in reply to Comment 75846

"Austerity is busy transforming the Great Recession into another Depression, in precisely the same way that the same austerity measures applied in 1929-1933 turned that crash into a Depression."

http://www.whitehouse.gov/omb/budget/Historicals

Grab the first document there, and tell me again that austerity was practiced from 1929-1933. But maybe a budget deficit equaling 50% of revenue might not be "stimulus" enough, and increases in the budget can be considered "relative austerity". I don't know, ask a Keynesian for a better answer to that.

Also, take a look at spending from 1919 (war and drawing down operations) through to 1924. Somehow, the economy jumped out of a severe depression by the end of 1921. In 1922 it started booming, despite all the austerity. From 1922 to 1929, spending stayed at the $3 billion mark.

Don't believe what they teach us in high school. At least entertain the notion that what's in the curriculum is factually wrong.

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