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In the 1930's European Governments put money into 'Job creation
schemes' to reduce the effects of the American inspired worldwide
recession. Europe were then on course to have emerged from the
recession before the US if it hadn't been for the wars.
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What are you are describing is defecit spending in order to encourage economic growth
Not only is that belief unsound, it displays considerable ignorance. The fact is, deficits can pretty well worsen recessions with depression, because one of the main characteristics of any severe recession is widespread bankruptcy. Deficits contribute to that by withdrawing capital from availability for business – the deficits absorb savings, and those savings are then not available to be lent to business firms in need of credit, so more firms go under than would otherwise have done so, and that perpetuates recession economics into depressions.
You're working under a popular misconception, to wit, money spent by the government is somehow more beneficial than that spent by the private sector. The government, however, will run at a deficit and not borrow from the general public and instead will manufacture what money they need by printing it. Thus they'll enlarge total spending while simultaneously lowering the value of that money in the years to come. You need only look to Japan in order to see that this is only effective in short term applications, and almost never during a recession.
Consider, for a moment, the War Between the States. Lincoln, forced to finance a length war, created the Greenback, or what is now known as a dollar, which was a loan from a New York bank to the US Treasury at 36% annually. Basically what Lincoln did, was print worthless paper money, for debts private and public, as a proxy for the currency of the Union which was based upon a Gold standard. The results? Inflation and recession. Published data showed that money supply in 1865 per capita was $47.42: Currency $1,651,282,373 Population 34,819,581 In the yearly contraction down to 1877, per capita money supply had fallen to $14.60 Circulation was down to $606,000,000. Government spending can never, ever, cure a recession.
An essential requirement to a sound economy is balanced budgets with small government spending. That has been the basic philosophy on which the United States has founded our system of free market enterprise, and one we lost sight of a hundred years ago.
*information of money sums from the Civil War taken from
http://www.shawneelink.net/~pridger/.../grnbkhist.htm