What Ended the Great Depression?... Comstock Partners says: "This is a controversial topic on which economists disagree, & we’ll probably never know the answer... it seems that if a nation spends enough it can spend its way out of depression, & that the problem before the war was that the nation just did not spend enough... conditions after the war were ideal for a resumption of prosperity—lots of consumer savings, little debt, loads of pent-up demand & millions of newly-released veterans who needed housing. In other words there was an abundance of consumer liquidity that took many years to run down. Conditions are obviously a lot different today. While the economy is far less depressed than during the 1930’s, consumers are still heavily in debt, savings are low, housing is in oversupply & foreigners own too much of our government debt."...
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