Wednesday, June 20, 2012

David Henderson takes on a Keynesian myth

From Defining Ideas at the Hoover Institution's blog

"Keynesians and others have their own explanations for why the Keynesian predictions of postwar economic disaster did not come to pass. The three most popular are: Rosie the Riveter left the labor force; the G. I. Bill put many returning soldiers in college rather than into the workforce; and the American people stopped saving and started spending the money they had accumulated during the war. The data, however, do not support these explanations."

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