Saving the depression: A new look at World War II

Abstract

From 1935 on . . . it was evident that output and incomes had risen because of net income injections by the government. Had these income-increasing injections been made more vigorously, from mid-1936 to mid-1938, in spite of fears of a rising national debt shared by most conservatives, the American economy would doubtless have bounded ahead much sooner. Anyone unconvinced on this point has only to look at the budget, income, and production figures for the World War II period.