We do have one example in history where there was a dramatic cut in spending. It was after World War II. Because the spending was so high during the world war– it was cut almost 60% and people worried, the Keynesians said “oh we have to have more jobs programs, more jobs programs”. But by that time the malinvestment and the debt had been liquidated, the soldiers came home we didn’t have work programs and guess what, the taxes were cut as well and that was finally when the depression ended. It ended not when the war started, but when it ended.
So don’t ever be tricked into believing that so many argue — because they use this as an excuse, they say that when you’re in a depression or bad times the only thing that will get you out of the depression is a war. That is absolutely not true. Don’t ever listen to them because morally that’s evil and that is the wrong thing to ever try, because war is always a cost to the people.
– Ron Paul in this video