Sunday, June 29, 2014

The CW on WWII and Healthy Economies

Common wisdom says that WWII brought us out of the Great Depression. If that is true, then, all that needs to be done to lift us out of this, the Great Recession aftermath, is for the government to spend on: highways instead of hummers---trains and transit instead of tanks---buses instead of ballistic missiles---schools instead of submarines---hospitals, health and healthcare instead of high-explosives---bridges instead of bombers --- fighting famine instead of feeding greed.

Further to the above comment: It was, really, the high marginal tax (up to 90%) needed to pay for the war that, in turn, moved wealth and income "down" the Commons' economic spectrum (re-distribution) that brought us out of the Great Depression. The "velocity of money" is key to a healthy economy. The constructive, healthy circulation of money.

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