Monday, November 17, 2008

Paul Krugman Schools George Will On The Great Depression

I think people are misunderstanding Krugman on the effect of the war. He isn't repeating the reactionary dribble that the war saved the economy, but stating the economy recovered. What he doesn't discuss here is important. The only way to prevent the "tendency of the rate of profit to fall" is to destroy capital (mostly means of production in this case). When WWII is considered in a context of every competing country's (allies and opponents), means of production was essentially wiped out, we have the real reason for the United States' economic recovery after the war. The right wing can never admit this since there are too many ideological penalties the come with it. If war really was a easy way to fix economies, why the slumps after Viet Nam, Gulf War I, the current occupations?
Read the Article at HuffingtonPost


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