[jswinghammer]

Everything you said about the post WW2 recovery is accurate I believe. Keynesians at the time were convinced the depression would resume once the war ended.

It is interesting to note that the modern Keynesians have turned on FDR. They always are unhappy with his trying to balance the budget after years of New Deal policy failed. They have turned on Hoover because he gave up as well after his version of the New Deal failed. They seem to forget that Keynes himself approved of what Hoover was doing. Their instance on the notion that a stimulus program is never large enough to explain their failures is a pretty old one.