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To: UCFRoadWarrior

Exports accounted for ~5% of GDP.
Consequences from SH (trade war) eliminated 66% of exports.
There was no domestic demand to take up the slack.
There is a multiplier of 1.2 to 1.8 for every dollar of GDP added to / removed form the economy.

5% of GDP x 66% eliminated = 3.5% GDP destroyed in year 1.
3.5% GPD x 1.2 to 1.8 = 4.2% to 6.3% GDP destroyed by year 3.

Or put another way...
US was a net exporter with collapsing domestic demand, and SH led to the rest of the world refusing to buy American.


54 posted on 02/04/2009 3:37:56 PM PST by sanchmo
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To: sanchmo

Still doesnt explain the growth in the economy during the period from 1934 and beyond...


68 posted on 02/04/2009 3:50:10 PM PST by UCFRoadWarrior (The Threat To Our Soverignty Is Rampant Economic Anti-Americanism)
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