It's not so much that, it's that most of the post WW2 recessions were deliberate ones that resulted from high interest rates from the federal reserve to reduce inflation. Once the Fed loosened monetary policy again, growth returned.
Remember, growth changes will trail federal funds rates by a bit. The relationship is extremely strong. It's one of the things you never hear about the 'Reagan miracle' or whatever. Yes, we experienced strong growth, but it was mostly due to the fed massively loosening monetary policy.
It really has nothing to do with free markets or even big or small government, and everything to do with the douchebag party holding America's economy hostage because it isn't their guy in the White House.
If you want to see jobs and an improved economy, you invest in it. Especially when interest rates are basically zero.
We don't do that anymore, which was my point.
It's conventional wisdom that the "New Deal" didn't get us out of the great depression. First, it didn't "end" the great depression, but it did stop the economy from cratering further while keeping Americans working so that they didn't starve in greater numbers. Second, that investment, plus the massive stimulus otherwise known as WWII is what basically created the middle class.
Second, those massive deficits were then slowly paid off by the increased wealth of the private sector through taxes, which is a policy that controls the possible inflation of gub'mint using fiscal policy of spending. Of course, back when the middle class was forming and maintaining itself, we had tariffs and the upper tax rate was in the 70-90% category.
Since the late 70s early 80s, we've gutted the fiscal ability of the evil gub'mint to help the middle class. Tax rates are gutted ensuring that the richest people in the solar system no longer need to reinvest in their businesses through equipment, training, benefits, and hiring. Now they just take the money and run to India, or hand it to Wall St. criminals to inflate bubbles.
And no, we didn't bomb our competitors into dust. We dumped massive amounts of money into the US economy, first into the pockets of the rabble, who spent that money paying off debt, securing their themselves and their families, and finally into extra cash in bank accounts.
The important thing to remember is that the rabble got to touch that money a little bit before it ended up...where else...but in banks and corporate coffers.
That is my point.
I am not calling for the US Gub'mint to print $100T for each man, woman and child. I am saying that if the US government invested into the country that has been ignored the past 50+ years, it would create private sector jobs to complete all of the infrastructure work required to make the US first in the world again. Those jobs would allow people to pay off debts, secure themselves, and finally put some in their bank accounts...all the while banks and corporations would of course STILL get that money at the end of the day, because they always get that money anyway.
i.e. Fiscal policy of letting the rabble touch a few dollars before it goes to the banks, rather than monetary policy where a central bank credits other banks with money that they then sit on because it's virtually free.
Of course, my idea would be derided as socialism akin to fascist communist atheist islam, or something like that. Because freedom. Also, FreeMarket.
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