New Zealand along with Australia had the fastest recoveries from the great depression because they cut government spending by 20%. New Zealand even reduced its debt payments by 10%, it defaulted partially.
The article containing that quote, Great Myths of The Great Depression has been around since 1998, but it’s always good to put it in front of people repeatedly because there myths don’t die easily.
For example, Old Leftists like Chris Trotter will always bring up the First Labor Government in NZ and FDR’s New Deal in the USA for how they dealt to the Great Depression. What they don’t mention is that Great Britain and Australia had centre-right governments – even with Labour Party involvement occasionally – that did not go for all the industrial nationalisation, new types of welfare support, and most importantly, Keynesian spending. And yet they emerged from the Slump at the same speed as we or the USA did in terms of GDP recovery, dropping unemployment (both Britain and Australia) and so forth.
What’s also not mentioned is that in the USA, after all of…
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