No shag - you haven't answered where the money came from that purchased the war bonds and paid the taxes during the war. That money is traceable back to the government, because they gave out contracts to build the war machine.
You talk about following the money, but you only follow it until your opinion is confirmed and stop. That is rather dishonest. Where did the wealth that the government used to fund the war effort come from? Taxes and bonds.
But, the government did it during both world wars... They printed money to sustain the war efforts. In WWII they made a very concerted effort not to print a lot of money because of the fear of inflation after the war. They, nonetheless did print money.
I never said that they didn't. But that only decreases wealth.
They gave government contracts and money to private industry to build the war machine.
So, shag, answer me this - how was the wealth created during wartime if it wasn't the government? Who was buying the majority of goods that the factories were producing?
Your first line answers the question in your second line.
The wealth was created by the private sector with the government as the client.
Your second question implies that it was the
buying of the goods (consumption) that created wealth. The truth is that wealth (and income) creates consumption.
This article, shows why this idea is false:
To say that income growth depends on consumption would be absurdly circular even in Keynesian terms, because Keynes argues that consumption depends on income.
So, while your view is reflective of Keynesian economics, it is the more modern, more
ignorant version of Keynesian economics that has developed in the past few decades; a version that in fact, ignores many of Keynes thoughts.
You are basing your view on the false premise that consumption drives economic growth, when, in fact, it is the opposite. You are putting the cart before the horse.
Here is another article explaining your assumption is exceedingly ignorant of reality and even the theory it is based in.
I have shown you over and over again - the government contracts created jobs and wealth.
You have done no such thing. All you have done is
asserted. You have not shown anything.
To claim that government contracts
created wealth is to ignore where government get's it's wealth. It is irrational.
Can you point to anytime in history where wealth has been created outside of the private sector?
The government gave these contracts to the private sector. The private sector was then the mechanism that created the wealth (as it always has been). If the government had not given out contracts to fuel the war effort, the private sector would still have been able to create wealth. The big difference that allowed for the creation of massive amounts of wealth that later funded the post war boom, was the wartime economy; specifically coming on the heels of a decade of depression.
That wartime economy forced people to budget (through rationing) and got people to save a lot of money. The success of the wartime economy in fueling the war effort changed people's perceptions about the economy and paved the way for a post war boom.
Your argument hinges on ignoring the fact that all government wealth ultimately comes from it's citizens. The citizens wealth is created in the private sector.
You keep wanting to talk about money, but money is not wealth. By itself, money is worthless. Only when wealth is attached to money does it have any value. The
only mechanisms that the
government has that can effect wealth can only decrease wealth through inflation (unless they want to stop printing and start removing money from the economy). If the government wants to create wealth, they have to "outsource" that job to the private sector. That is the only way that the government can create wealth; through the private sector. That is what they did in WWII.
All you are doing here is, once again, talking in circles, ignoring certain facts and attempting to obfuscate to rationalize your point of view. You clearly won't consider the idea that your belief is false and are accepting or rejecting of other facts, arguments, points of view, etc. based on weather or not they confirm your point of view. The usual name for that way of proceeding is
prejudice.