“The advocates of spending think they have a killer piece of evidence for their position that economic vitality requires larger government budgets: World War II. The standard story has it that despite Franklin D. Roosevelt’s best efforts, the New Deal did not quite end the Great Depression. What did? According to this story, it was the massive spending behind U.S. participation in the wars in Europe and the Pacific. The vigorous economic growth of the late 1940s and 1950s is touted as evidence for the blessings of big government spending.”
But Sheldon Richman begs to differ. Worth the read.