In the mind of Stephen Leeb, World War II was the stimulus that got America out of the depression.
Be sure to also listen to the recent interview with Robert Higgs who discusses this issue at length. And here is another Leeb video.
Source link: http://archive.mises.org/9129/what-we-need-is-another-world-war/
What we need is another World War
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This incredibly dangerous idea is supported by Krugman as well. Unfortunately, the idea appears to be plausible at first, since “the numbers” show improvement at the start of the war. But “the numbers” ALSO show that we experienced the greatest depression ever in 1946 — AFTER the war ended. Here is a QJAE paper which demolishes the war=stimulus argument “The Great Depression of 1946″:
http://www.qjae.org/journals/rae/pdf/R52_1.pdf
Actually I think the cited QJAE paper demonstrates the “depression of 1946″ was really not a depression. GNP includes both private and government spending. Since government spending increases greatly during war there is an increase in GNP. This increase in GNP is not an indication of a healthy expanding economy. Rather it is associated with the economic and social horrors of war.
During the so-called depression of 1946 there was a drop in GNP since there was a large (though not large enough) decrease in government spending. However since there was also an increase in private investment, the economic well being of citizens actually increased during this time. For example, food, housing, automobiles, etc. became more affordable and available than they were before the war.
The QJAE paper illustrates the problems with popular economic indicators. It goes without saying that the “war boom” reflected in the positive GDP/employment numbers of 1942 was also hollow.
This was a terrible debate, the guy accused Schiff of not answering the question and then talked over him every time he tried to answer the question.
Haha, Leeb is the worst lackey for state capitalism I’ve ever seen. First, he has a horribly annoying voice. Secondly, his mommy obviously never taught him how to be polite, because he NEVER SHUTS UP. How is anyone supposed to talk over somebody who will make everyone’s ears bleed if you don’t agree with that person? Lastly, I love his argument from ignorance: “How do you know that the economy won’t recover” and “We don’t really know whether the auto industry [will need another bailout]…” If you consider this proof of something, please, please go back to school.
Needless to say, arguments from ignorance are more air and no substance. It is also funny how Mr. Leeb uses that argument for governmental intervention (“Miracles can happen”) and yet seems to believe the free market cannot work (“Name one example of a depression in which government nonintervention worked”).
But to be honest, it is unfair to say Mr. Leeb is implying we need another World War. After all, according to some people, we are already in one: the War on Terror. Another thing I realized is that broken window fallacy is not a very well-known term in the realm of politics and media. And Mr. Leeb is exhibit A.
Is it just me or does this fellow resemble with Peter Pettigrew from the Harry Potter movies. And one might say he is equally evil as well. Well done CNN, hopefully next time we also get to see him transform into a mouse.
And this is the state of the debate on mainstream outlets. Schiff is one of the few people that speak sense that gets on national TV regularly and they have total idiots talk over him.
It’s the ranting dwarf!
So, mass murder is cool now too.
Again… I don’t like all of his ideas but Gore Vidal hit it squarely on the head when he said that Iran and other “rogue States” have nothing to fear from the US because the superpower is broke.
To fund a large scale war the US government would need to cut down on all other expenses: how will recipients react to the news that they won’t get subsidies anymore because they are needed to buy tanks? How will people react to a massive reduction of their own welfare: those life-saving drugs are needed at the front!
Finally… who would buy all the debt to finance this? The enemy?
You have to be an idiot to think that WWII got us out of the Great Depression but it seems to be the prevailing view. It’s so easy to see that it’s wrong with just a little thought.
One of my co-workers stated this view and I pointed out to her that sure the GDP went up but you can achieve that by tearing down the Rocky Mountains, shipping the dirt to the Grand Canyon, and filling it in.
Likewise WWII. Are factories, and theirs were busy full time producing bombs and bullets to drop and shoot at the other side, destroying not only industry, but homes, and workers too. People were “employed” destroying each other.
What got us out of the Great Depression was the death of FDR, and the fact that when we came out of WWII most other countries industrial bases were destroyed.
These guys (Mr. Stephen Leeb and Mr. Paul Krugman) are crazy. How can anyone think about killing people in war to stimulate economy?
If Leeb and Krugman has lost all their sanity and wanna go on war then, first give a gun to Leeb and put him in the first raw against the opposition army. When a red hot bullet will pass nearby his ear then he will realize what war is all about.
And let’s first Bomb Mr. Krugman. Drop one daisy cutter on his home and one on his head. His house and brain both are in bad condition and needs major repairs. Destroying both will stimulate his home economy and nerves of his brain so that he can start thinking again!
Let’s just turn the question around – what depression was not created by interventionism?
That won’t help the dialogue because the misinformed will still try to be the loudest voice out there!
I am sure that is part of his assignment. Do not allow the information to reach the ears of the listeners.
Now we know the chief criterium for the ‘expert’ to face-off and counter Peter Schiff.
If war could get us out of economic hard times, then why are we not booming now? Or during and after Iraq 1, Vietnam, Korea, etc.
The facts are pretty clear that war in and of itself offers no economic stimulation. There may be a case for the idea that once Europe destroyed itself, that part of the US economic growth came about because the US still had all of its factories and resources intact and benefited from the rebuilding of Europe, after the war ended. That was hardly a government policy.
Propose clean living , health and economy instead of even thinking about WW3 !!!!!!!!!!!!!!!!!
Nonsense or true : Climate Change because of us , humans, is NOT the issue.
Fact is ; Oceans are empty , forests as large as footballfields vanish non-stop every single second … , pollution a Go-Go , noises , fumes , modern diseases everywhere , cancers , social instability, energy- and watercrisis , economical crisis ,wars … lead by small talking , percentages, TV ,paperwork , and soft incompetency denying basics and basic solutions…
Personal Action is the word RES NON VERBA
* Change Lifestyle
* Massive Reforestation
* Solar Energy free on every roof .
* Reduce meatconsumption
* Education versus overpopulation
* Tax objection
Do not ignore , be curious , brave and honest , have faith and positive thoughts : always ! One can change the world , history is full with examples of persons who did it…so ? if we -salt of the planet – reunion , we change the world -maybe today -!!!
http://www.stopco2.com
Instead of WW3 and ridiculous arguing on TV better plant trees ….
Food cans and plastic PET drinkwaterbottles
A)Fill each dog/cat/human-food can and PETbottle with self-made kitchen compost + earth
B)plant a tree. (baby-tree or seed)
Cut a PET bottle in 2 and do the same as above …..care it well
Personal action ……
+ 2 billion bottles and cans a day we throw away = excellent pot to plant a tree
Personal action ……
=60 billion of trees a month , 720 billion trees a year ….!!!!!
mini plantation on your roof ,window , terrace , front door ….
Buy the seed or find it in the forest .
C)We can plant them then on a Car-less Sunday at the side of High-Ways ,
entrance of the town/village, in schools , on the mountain etc …
Let´s have a party !!!!BeforeBigâ€KYOTOâ€Conference discussing the basics about Climate Change….
res non verba ……personal action ….make a wave ….spread the word http://WWW.STOPCO2.com
“I am sure that is part of his assignment. Do not allow the information to reach the ears of the listeners.
Now we know the chief criterium for the ‘expert’ to face-off and counter Peter Schiff.”
Well, then that settles it.
We need a mole. We need to get one or two of our guys (or girls) deep undercover, spouting this or that nonsense to the right ears, get them on these programmes with Block or Schiff, and watch the passivity ensue.
Alexander, love committed people like you. I have always wondered why people want to stop “Global Warming” but then throw empty bottles and disposable napkins in the woods… talk about coherence!
And on the issue of solar panels: great idea, but let private enterprise sort that out; right now they are grossly overpriced and to make them buyable the manufacturers rely heavily on government subsidies, at least around here. I think many more people would start using them if they didn’t have to fill a ton of paperwork to get refunds and rebates.
Hey, what’s with the book prop behind Bush’s head? Are we supposed to believe that he reads stuff?
“sure the GDP went up but you can achieve that by tearing down the Rocky Mountains, shipping the dirt to the Grand Canyon, and filling it in.”
Brian, shhhhh. Don’t give Obama any ideas.
One scary thought I had, is that if guys like Leeb truly believe that WW2 was what brought us out of the depression then what will happen in a few years if their Keynesian ideas continue to make things worse? Will we suddenly find ourselves in the midst of WW3, because some jackass Keynesians and bureaucrats decided that a world war would be the only way to get the economy back in shape.
Here is the point that some are missing: Wars destroy capital and people. Think what we COULD HAVE DONE with the trillion dollars and four thousand lives already wasted in Iraq and Afghanistan.
beebs-anarchist-pacifist.
When will people understand that humanity must wage constant war for its own good?
“Stop talking.”
“No. Because you haven’t answered my question.”
gotta love it!
The government should not intefere with economy. All they are doing are sticking are band-aid on a bullet wound. Let the market sort its self out. All these car factories may still calopse anyway its only delaying the enivatable, just like the share bailout they went up for a few days then everyone sold them again.
Why doesnt Bush help pay the mortgages of the people struggling/defaulting?? Why should car companies get help & not the man on the street
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