Will the idea of big spending government also delivers the same outcome? If yes, how do we manage those so that we will not arrive at the great depression of 1929?
Where I live we get 10x the gov. budget deficit than the previous year and the government is reducing and eliminating taxes at the same time. So the "taxes" will come in the form of reduced value of money, or taxes in the future. Level of taxation is pretty much equivalent to the level of government spending. There's, no way around it.
On top of that, general population's savings are being depleted. So yeah, future is bleak. Anyway, I hope the gov spending will get to sane levels soon.
It doesn't help that this is the global phenomenon, so economy/currency is not crashing as much compared to the surrounding countries. But there are still wild swings of ~10% or so compared to USD or EUR.
Honest question, what mechanisms do you think will make this happen? Or is it more of a general hope-it-happens?
In my experience, getting anyone to spend less after they are used to spending a lot (be it a government, a company, a business unit, or even just your kids) simply doesn't happen, barring a fundamental change in circumstances whereby the alternate of continuing to spend a lot results in immediate ruin.
Time so switch to a better currency!
It's a pretty hard case to make that a disease which disproportionately killed health 20-30 year-olds led to mass prosperity.
Given all the advancements which were happening in the early 20th century, I'm inclined to say that prosperity happened in SPITE of WWI and the Spanish Flu. Who knows where we would be, had we avoided two huge human catastrophes.
That's exactly what happened during the black plague. It lead to the end of feudalism. A shortage of labor will absolutely boost the value of labor.
Not sure that's worth the cost of course.
I don't know if that is the right lesson to learn. The great depression was largely caused by a stock market crash related to lack of regulation, and a drought (hello climate change). It was largely solved by big government wartime spending.
However in reality the deathtoll from COVID is scarcely distinguishable from regular influenza seasons. Only 0.06% of Sweden's population succumbed to COVID and their annual deaths are shaping up to be the same as prior years, for example. Similar situation in Germany.