June 22, 2014 by History in a Hurry
No, WWII did not end the Great Depression
by James Corbett
June 18, 2014
The idea that the Great Depression was finally brought to an end by the onset of WWII has been a staple of history textbooks, documentaries and various war propaganda for decades. This myth continues to be perpetuated to the present day.
The idea that war is good for the economy is, needless to say, a fallacious argument which itself is based on incorrect economic data.
The idea that the economic activity surrounding militarization represents a net economic gain is called the “broken window fallacy.” This fallacy was named and identified by French economist Frédéric Bastiat in his 1850 essay, “That Which is Seen, and That Which is Not Seen,” in which he imagines the case of a shopkeeper whose careless son breaks a pane of glass in his shop window. In Bastiat’s example, ‘that which is seen’ is that the glazier comes, performs the task of fixing the window, and receives six francs for his effort. Onlookers to the scene believe that the economy has actually been bolstered by this act of destruction, since six francs have been spent into it that otherwise would not have been.
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