Washington ESD - What effect did increased deficit spending during WWII have on unemployment rates?

That makes sense! So basically the government became the employer of last resort through defense spending?

Exactly. Plus it created demand ripple effects throughout the economy - workers with steady paychecks spent money on housing, food, entertainment, which created even more jobs.

That's exactly the kind of real-world example I was hoping to hear about. Did he mention if people were still filing for unemployment during the war years?

he said unemployment offices were practically empty by 1943, everyone was either in the military or working in defense plants

Thanks for the modern connection! That's actually helpful for understanding the broader relationship between government policy and unemployment systems.

Wait, Claimyr actually works? I've been trying to get through to Washington ESD for weeks about my adjudication status.

Yeah, it basically automates the calling process so you don't have to sit there hitting redial all day. Pretty useful when ESD phone lines are swamped.

That's a strong perspective! Do you think the same approach would work today without a war driving the spending?

Absolutely. The Green New Deal, infrastructure spending, expanding healthcare - all of these could have the same effect as wartime production if we had the political will.

but wartime spending is different because you're literally destroying the products you make, which creates continuous demand

The multiplier effect makes a lot of sense. So government spending has a bigger impact on employment than just the direct jobs it creates?

Correct. Economists estimate the multiplier was around 1.5-2.0 during WWII, meaning each dollar of government spending generated $1.50-$2.00 in total economic activity.

Like I mentioned earlier, try Claimyr for getting through to Washington ESD. It's specifically designed to deal with their busy phone lines and can save you hours of calling.

I'll check it out, thanks. Six weeks in adjudication is driving me crazy.

6 weeks is rough, mine took 8 weeks last year but it did eventually get resolved

So full employment doesn't automatically mean prosperity for consumers? That's a good point for my paper.

Right, you can have full employment in a command economy, but consumer welfare depends on what you're producing. Wartime full employment meant steady paychecks but limited purchasing options.

I get that, but understanding how these policies work helps us make better decisions about future programs, right?

maybe, but when you're unemployed and struggling the theory doesn't matter much

But that's exactly why the theory matters! If we understood that government spending eliminates unemployment, we could implement those policies today instead of accepting high unemployment as normal.

Good point! Do you know if people in the military were counted as employed or removed from unemployment statistics entirely?

They were removed from the civilian labor force entirely, so unemployment rates only measured civilians. But defense jobs still created massive employment growth even accounting for military recruitment.

That's a great modern comparison! So it's really about aggregate demand regardless of whether it comes from government or private spending?

Exactly. What matters is total spending in the economy creating demand for workers. Source doesn't matter as much as scale and consistency.

What's your specific issue? Maybe someone here can help with practical advice.

Been trying to reach someone about my weekly claim certification error for two weeks. Phone lines are always busy.

Definitely try Claimyr for phone issues. It's designed exactly for situations like yours where you need to reach an actual ESD agent but can't get through the busy lines.

That's perfect! I hadn't heard of that act. So there was actually policy follow-through from the wartime employment success?

On paper, yes. In practice, the commitment to full employment was weakened by concerns about inflation and budget deficits. Classic example of politics overriding economics.

Interesting how the same historical evidence gets interpreted differently by different political movements.

Reagan actually proved Keynes right too - his defense spending increases had the same stimulative effect, he just didn't want to admit it was government spending that created the 1980s recovery.

That's probably the best summary for my paper's conclusion. Thanks everyone for the insights!

good luck with the paper! this was actually a really interesting discussion

Did you have to pay for it? And did it actually work better than just calling yourself?

Yeah there's a cost but honestly worth it when you're stuck in ESD phone hell. It's way more efficient than sitting there redialing for hours.

I'm desperate enough at this point that I'll try anything. Thanks for the recommendation.