Let’s look at the numbers here. In 1929 when the stock market crashed to 1932 this was the national debt and the GDP:

National Debt GDP
6/29/1929 16.9B 103.6B
6/29/1930 16.1B 91.2B
6/29/1931 16.8B 76.5B
6/29/1932 19.4B 58.7B

The “Do Nothing” policies that our current GOP advocate we do now, led to the economy contracting severely back then. Now here is when the New Deal kicked in:

National Debt GDP
6/29/1933 22.5B 56.4B
6/29/1934 27.1B 66.0B
6/29/1935 28.7B 73.3B
6/29/1936 33.7B 88.8B
6/29/1937 38.4B 91.9B
6/29/1938 37.1B 86.1B
6/29/1939 40.4B 92.2B
6/29/1940 42.9B 101.4B
6/29/1941 48.9B 126.7B

There is a clear relationship between deficit spending and economic growth here during these bad times. The one year republicans persuaded Roosevelt to cut the deficit (1938), the economy contracted again. When deficit spending resumed in 1939 the economy took off again. (That’s not to say we need high deficits always. During good times the economy will grow without it. )

The GOP will say it wasn’t the New Deal that ended the Depression, it was WWII! Yeah, well WWII was the ULTIMATE STIMULUS. That’s right folks, HUGE government borrowing and spending boosting the economy.

National Debt GDP
6/29/1941 48.9B 126.7B
6/29/1942 72.4B 161.9B
6/29/1943 138.6B 198.6B
6/29/1944 201.0B 219.8B
6/29/1945 258.6B 223.1B

Our Debt to GDP ratio in 1945 was 116%. Today with the trillion dollar stimulus it is still about 80%.

2009 10T 12.5T