Jul

27

You cannot find a single textbook that suggests that World War I was a "big deal" in terms of the history of the causes of the Great Depression. There are literally a thousand references in the academic literature to Smoot and Hawley's awful tariff for every one that suggests that maybe all that spending that started in 1917 had something to do with it.

So, as my final rant for the day, let me share a few numbers. All of these are based on the Constitutional system of accounting, i.e. the U.S. dollar as the same fixed measure and weight of gold.

From 1791 through 1849, the cumulative budget surpluses and deficits of the U.S. Federal government resulted in a net revenue surplus of $70 million. From 1850 through 1916, the result was a cumulative net revenue deficit of $925 million– almost all of which was the result of the extraordinary expenses of two wars– the Civil War/War of Rebellion and the Spanish-American War.

From 1917 through 1919 (3 years), in the War to end all Wars, the U.S. Federal government had a net cumulative revenue deficit of $21,238 million.

As spenders, Obama and the Congress were pikers. In their 8 budgets they did manage to double the outstanding Federal debt; but Wilson and his boys (good male bipartisans all; there were no women in Congress) were able to increase the outstanding IOUs 20-fold in less half the time.


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