In One Word: Production

In an attempt to understand this idea of scale when it comes to the stimulus, I turn to Paul Krugman, who has been reporting ahead of the curve. His observation: no wealth created in America during Bush - only artificial pricing drawn from easy-credit. Today's correction consistent with the 1930s and Japan though not yet as deep. Krugman notes that FDR's New Deal started the country towards recovery but we owe are today to World War II. The US government footed war production entirely, borrowing 120% against GDP versus 8% or so today. In return, of course, we helped create the largest market imaginable for our goods and eventually services like accounting and banking... boy, does Europe wish we stopped at the 747s and Microsoft. Krugman concludes that without an equally massive works program it will take a generation or more to pay down our $trillions. What would the Gipper be thinking now?

I imagine that I am the only person, really, who cares about these pithy observations on the economy so why? Well, it helps me boil down the endless chatter to something I understand and I don;t care that my missives selfish or self-serving. There you have it. Also Madeleine and Eitan may read this very blog one day+I wish them to know what was happening inside the dark hole since they will be paying for it.

The photo BTW appeared in 1942 and widely circulated particularly in LIFE Magazine in 17 September 1942 and the Illustrated London News in the next month. It shows 4,500 aircraft models suspended from Chicago’s Union Station. The inspiration derived from FDR's assertion that America would produce 185,000 war-focused aircraft in 1942 and 1943.