How did the USA afford the Lend-Lease Act in the midst of the Great Depression? Did they simply print more money?
>How did the USA afford the Lend-Lease Act in the midst of the Great Depression?
The Lend-lease act did not happen in the midst of the Great Depression.
>>978292
Yes it did.
>>978290
They put the population to work.
>>978290
Just because the economy was fucked at the time didn't mean the us couldn't use it vast amount of resources to support its allies
>>978307
Do you even know what resource means?
>>978290
>that commie chinese flag instead of the nationalist flag
TRIGGERED!
>>978290
The Great depression was caused by lack of demand. The U.S.'s economic woes were primarily because it had enormous output capacity that simply couldn't be put to efficient or effective use because there wasn't enough people wanting the stuff that they were making to be worth employing people to make it.
Suddenly, demand goes up. Most of the problems solve themselves at that point.
>>978298
The Lend-lease act was signed in 1941. By no definition of the term and according to no author is that the midst of the Great Depression.
>>978330
The printing of money gives the government the power to invest in new industries to replace the ones that are no longer fully utilized.
>>978347
(continued)
The problem with printing money is that politicians can over use it when it isn't needed just to get votes and that rich people absolutely despise it because it is wealth redistribution, pure and simple. Their fortunes are devalued and the poor get most of the benefits.
>>978458
There is ALWAYS something to spend money on.
>>978418
I mean literally printing money. Devaluing current bills in order to give the government itself more buying power.
>>978292
For lolbertarians it didn't because the new hip myth goes that new deal prolonged the great crisis until 1960's or 2010, I don't even remember how the current version of this meme looked like.
As for the topic - they've turned their economy into semi-central planned, which is typical trait of war economies. As such they were able to use their ENORMOUS industry to outproduce basically everybody, and where they've lacked money they gave bonds(as in - bought shit on debt).
>>978540
Until that specific resource is depleted
Demand for stuff creates money, not the other way around
>>978290
>that chinese flag
Nice modern propaganda m8
>>978544
No you don't mean literal printing of money because that's not what printing of money is for.
PRINTING, the act of turning linen and paper into dollar bills, serves ONLY to supply business and individuals with the means to transact their money physically. It has no relation whatsoever to the amount of money in the economy, and thus no relation to the value of money.
>>978307
No dumbass, even in the mist of the Great Depression the US was still an economic powerhouse dwarfing every other economy on the planet. In 1938 the US economy was still eight times larger than the Japanese economy was.
The US was not achieving peak production, that doesn't mean it wasn't producing anything.
>>978645
>name calling
wew
>>978656
I calls em like I sees em.
>>978645
Buying power doesn't literally materialize or of thin air. The US was receiving less revenue and spending more.
>>978596
>>978317
M8, all Anti-Japanese armed parties in WWII got American arms. Commies also had tommies but thats the extent of their lend-lease: small arms.
Ironically its papa Stalin that's the one who was giving nothing but moral encouragement to the Chink reds, since he really wasnt keen on the idea of the place unified under Chinese rule
But yeah, China was pretty much consdered the Republic and was internationally represented by the White Sun flag.
>>978670
And that's completely independent to the buying power the US already had, not to mention its massive amount of unrealized potential buying power that became relevant when the country started getting a massive influx of demand to make creating the supply actually worth it.
Real life is not a video game. The US was the most industrialized and technologically advanced (in general) country on the planet at the time. Especially in regards to manufacturing technology and techniques, the US stood heads above everyone else.
As soon as there was demand, the US was more than able to meet it with supply. In fact, US supply greatly outstripped demand. In a competitive scene that's bad, but of course this was total war, so having more tanks and rifles than you know what to do with is a very good thing.
>>978643
>producing more dollar bills has no impact on the number of dollar bills in circulation
Printing more money doesn't change the total actual wealth of an economy. It simply reduces how much of the economy a bill represents.
If I give out 8 vouchers for part of a single pie, each voucher is with one eigth of the pie. If I create 8 more vouchers then all of a sudden the pervious vouchers only represent one sixteenth of the pie and I have reacquired half of the pie.
>>978683
Not entirely true anon, we shipped quite a few tanks and jeeps as well
But yes it was mostly just small arms
>>978703
*worth
>>978703
You need to understand the difference between physical dollar bills, and money. The amount of physical bills is a TINY fraction of the amount of money in the economy. So tiny in fact that a change in the amount of bills has an entirely insignificant effect on the amount of money.
The amount of money in the economy has never been and will never be affected or dictated by the printing of physical dollar bills.
>>978755
There is always a piece of paper backing up any dollar sign you see.
Regardless, the government can pump as much money into the economy as they want. It simply devalues the money already issued.
>>978791
No there isn't.
That would be insanely wasteful because the vast majority of money is not needed physically in the form of bills.
Money creation is done by banks, and its all "virtual" money. Printing dollar bills only serves to supply the need for pieces of paper to do physical transactions with.
>>978683
This is a listing of things shipped to Russia under lend-lease:
http://whatreallyhappened.com/WRHARTICLES/pearl/www.geocities.com/Pentagon/6315/lend.html
>>978791
What the fuck? No.
>>978791
Are you retarded? Do you really think that American businesses or banks have hundreds of billions of greenback notes just in a vault somewhere?
>>978856
I'd rather not discuss the exact affiliation the Federal Reserve has with the US government.
The fact of the matter is that the US government has significant control of the money in circulation and coresponding inflation. The more money put into circulation increases inflation, decreasing the value of any one dollar.
>>978976
Anon didn't say greenbacks. There are different kinds of bank notes.
>>978995
So what? According to the Federal Reserve only 1% of bank notes are not dollar bills.
https://www.frbatlanta.org/-/media/Documents/filelegacydocs/DollarsCents.pdf
>>978688
Under that context, wouldn't it be in US interests to encourage wars elsewhere? Why did they bring Pax Americana to Europe in that case, merely pity?
>>978985
>The fact of the matter is that the US government has significant control of the money in circulation and coresponding inflation
Well the Federal Reserve does. I have no idea about how much influence the US government has on the Feds. (I know that here in the EU the ECB basicly does what the EU wants it to do)
Inflation however is not caused directly by the amount of money in circulation. There is a direct relationship between the interest rate and the amount of money available. Inflation is a result of employees expecting higher prices (expecting inflation, possibly because of more money flowing into the economy), asking higher wages, causing higher prices (actual inflation).
>>979028
But we did anon and we still do it
And it wasn't out of pity, it was because of the power stuggle between us and the soviets. Did you completely skip your history class in school anon?
>>979028
>Japan attacked the US
>Germany then quickly declared war on the US
>UK, the US's closest ally, was in dire need of help
Gee I dunno.
>>979056
The us government IS the feds anon
>>978290
The Great Depression was over for the most part by 1939 in the United States. Lend Lease was enacted in 1941.
>>979068
From what I read the Fed is independent. Even if its not as independent as most central banks are.
>>979113
It's independent because the US Federal government is not all powerful and the president is just a job not a pedigree giving him free reign of all the earth.
>>979130
and because private banks are part of it?
>>979148
That too, yes. But it's not a conspiracy by any means.
>>979056
Inflation is at its basest is caused by increasing amounts of something. The Spanish mine a lot of silver and the price of silver goes down. The US government as more USD into circulation and the value of a USD goes down.
>>979772
>The US government as more USD into circulation and the value of a USD goes down.
The Fed since 08 has massively increased the monetary supply with essentially no inflationary effects, how the injection is done is what matters
