Richard K. Vedder: Learning Some Lessons from World War II
America faced worse unemployment and debt situations at the end of World War II than it faces today. Many economists back then warned the end of wartime spending and return of millions of soldiers would plunge the nation back into a Great Depression. Luckily for the nation, the warnings were ignored, and the economy came roaring back. Economics Professor Richard K. Vedder of Ohio University joins us to discuss "Stimulus by Spending Cuts: Lessons from 1946," an article he recently wrote with Professor Jason E. Taylor of Central Michigan University to explain why sharp cuts in government spending after World War II strengthened the economy and employment ... and why the lessons of 1946 need to be applied today.