How is it possible that socialist countries like Nazi Germany and USSR were so efficient at manufacturing things? Yes, I know that Germany lost partly because they lost the arms race against Allies, but considering where they started from after WW1, I think it was still impressive. How do you do that without the insanity of a dictator? Would that kind of economy work if instead of tanks you make cars for example, or direct the power and effort with same efficiency to some entirely different field? How does this compare to capitalism?
Not a bait, Im just stupid.
>>1121391
>How is it possible that socialist countries like Nazi Germany
stopped reading right there
>socialist
>efficient
4Head
Nazi germany wasn't socialist it was Keynesian, which works really well. The government starts a lot of manufacturing projects and creates a lot of jobs that stimulate the economy. It's not rocket science.
Don't forget that Hitler also ignored the Versailles treaty which was a giant burden on Germany.
>>1121391
>USSR
>Bought everything from America
>efficient at manufacturing
>>1121419
>Keynes
>hey guize let's waste public funds we don't have to create growth that will at the same time raise the deficit and debt
genius
>>1121419
Thanks for your answer. Why isnt Keynesian system used as it was back then? Whats the catch?
>>1121449
It doesn't always work and conservatives aren't a big fan of government spending. I'll be honest I'm no economist so I don't know the details.
>>1121449
The bottomline of Keynesian economics is that demand should increase in times of economic recession. The government can do this if it has money but it didn't work in the 2008 crisis because most governments were broke as well because they bailed out the banks.
>>1121481
Ok thanks. What if the bank is owned by the government? So you would basically just own to yourself, if you make the demand for work and print money to pay it, then what? Inflation?
>>1121448
Reminder that the modern US debt has its roots in Reaganomics.
>>1121503
Printing money is a bad thing because it nearly always causes inflation. You can't just increase the amount of money in a country because prices will go up in response. I'm not sure what happens when a bank is government owned. The ECB in Europe can indirectly steer other private banks by increasing or decreasing interest rates, thereby indirectly manipulate spendings in countries. If there's too much spending without increase of capacity (the amount of products that can be made in a country) inflation will go up. In response the ECB increases interest rates, making it more attractive for consumers to save up and stop spending so much. I don't know how much the ECB and the European Union work together but I assume they do.
>>1121391
>but considering where they started from after WW1
they started as the country with the highest GDP on the continent after ww1...
