Posted 12 April 2009 - 05:52 PM
Fwiw, I think the biggest difference the federal spending made was restoring confidence in some areas. Projects like TVA gave a lot of people jobs and helped to restore confidence. This time, the economy might begin to recover on its on even before the stimulus money comes into play.
As far as federal spending, seems the major thing that got us out of the great depression was spending on World War II. Some of it was US spending, but some was foreign government spending. The depression didn't really end until 1940 or so. The US was spending more, but the British were emptying their gold reserves buying US weapons, and the Russians were spending money as well.