Sep

7

 The post-World War II prosperity of the United States had only one source and cause: the private savings of individual Americans. For nearly half a decade– from the beginning of 1942 to mid-1946 Americans, both in and out of uniform, saved effectively all of their disposable incomes. They had nothing to spend the money on since everything was rationed. After rationing and price controls were lifted (much to the dismay of the Nobelistas of the time who thought it should be continued), those savings were spent– voluntarily– by individuals; and businesses responded by extending– for the first time– real credit to ordinary Americans. It was the stimulus of that private expenditure, not the government's "investment" in bombs, that produced the revival of the American economy. By contrast, Britain chose a much different path. At the same time the Republicans were passing Taft-Hartley, Britain was continuing rationing and price controls. Under Clement Attlee's Labor government, with the nationalization of previously privately-owned industries (medicine, coal), government control over the economy was expanded and extended.


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