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« Heard on Campus Today | Main | Self-Interested Legislation »

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spencer

But from 1933 to 1941 the economy was not stagnant. Real gdp almost doubled -- an increase more then triple the long term growth trend. the long term growth rate of the US economy from 1900 to 1950 was 3.5% and
the economy surpassed that trend line prior to the start of WW II.

If you incorporate capacity utilization or the GDP gap into the investment equation it fully explains the weak investment the author is blaming on political uncertainty.

Sam

But the only reason that econonmies around the world started to grow after 1933, was because everone was preparing for WW2.

No improvement were made economically, the government just spent masive amounts of monet creating jobs for people in new industries making wweapons etc.

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