Adequate Quote by Paul Krugman
“What saved the economy, and the New Deal, was the enormous public works project known as World War II, which finally provided a fiscal stimulus adequate to the economy’s needs.”
About This Quote
Source Book: The Conscience of a Liberal, 2007
World War II acted as a massive fiscal stimulus, reviving the economy during the New Deal era.
In simple terms: WWII was fiscal stimulus.
Key Takeaway
Recognize stimulus power.
Themes
economics
history
policy
Mood
analytical
historical
Type
economic
policy
When to use this quote
- government spending
- recovery planning
- infrastructure projects
Key Concepts
Keynesian economics
public works
Questions to Reflect On
- What modern stimulus could work similarly?
- How to balance stimulus with fiscal responsibility?
A Different Perspective
Stimulus can cause debt and inflation.
![“According to, for example, one academic by the name of Philip Harvey, whose expertise is basically how do we create a New Deal, today. According to his estimate, these jobs could be created for far less than the [Barack] Obama stimulus package, which cost, you know, $700 or $800 billion, something…” quote by Jill Stein](https://sms4smile.com/quotes/img-quotes/4bb/jill-stein-660_academic_according-to-for-example-one-academic-by_1278852.jpg)
