There is absolutely nothing about private enterprise that enabled deficit spending or confidence in US’s future. The War Department collaborated very closely to retool existing industries and also help create entirely new ones by sharing technology and designs with the private contractors; it could have simply nationalized them and there would literally be 0 change in confidence in US treasury bonds. Fundamentally, the distinction on how you choose to organize your means of production doesn’t really matter all that much, and certainly doesn’t matter as much as you seem to believe.
Re:Larry and Sergey: A Valediction
by RestlessMind on Monday December 09, 2019 @12:32AM
(#21740601)
The fact that USSR was able to ramp up its industrial output, maybe not as high as USA but much higher than most other countries, refutes your point that private enterprise was not really needed for war effort. Because USSR, due to communism, had no private industry.
The USSR was a one trick pony: narrowly specializing in warfare. When this specialization became less relevant due to MAD, it fell apart.
It had slave labour though.
Re:Larry and Sergey: A Valediction
by irrationalactor on Monday December 09, 2019 @05:58PM
(#21747593)
Have you ever read about the history of the USSR?
If you include the millions who died in various famines as well as those that were executed directly by Stalin, the number of victims of the USSR has been estimated to be anywhere between 6 and 15 million people.
The Soviet Union has to be the worst counterpoint to anybody arguing against private enterprise.
The reason people are willing to buy US government debt is because they are confident the US government will be able to pay them back, with interest. Why are people confident in the US government's ability to pay...and where does this money come from? The strength of the growing US economy and the money the government will derive from taxes on this growth.
Or conversely, let's look at what the US government spent that money on: supplying the war machine via US industrial capacity. That industrial capacity wasn't created out of thin air. Take a look at Detroit for example. Absent the existing industrial capacity enabled by the automotive industry, the allies would likely have not won the war.
Both the ability of the US government to deficit spend, and the things they spent that money on, were a direct result of the strength of the US's private enterprise.