Hard to Believe that There Are Still Economists Who I Thought of Note Five Years Ago Who Still Claim That Fiscal Expansion in a Depressed Economy in a Liquidity Trap Will Not Boost Production
John Maynard Keynes, May 23, 1939:
It is not an exaggeration to say that the end of abnormal unemployment is in sight. And it isn't only the unemployed who will feel the difference. A great number besides will be taking home better money each week.
The Grand Experiment has begun. If it works--if expenditure on armament really does cure unemployment--I predict we shall never go back all the way to the old state of affairs. Good may come out of evil. We may learn a trick or two which shall be useful when the day of peace comes.
If we can cure unemployment for the wasted purpose of armaments, we can cure it for the productive purposes of peace.
But, alas, it is true.