Changes

[[Image:29-49.gif|right|250px|thumb|Dow Jones Industrial Averages, 1929-49.]]

[[Image:29-49.gif|right|250px|thumb|Dow Jones Industrial Averages, 1929-49.]]

[[Image:115yeardowgoldratio.gif|right|200px|thumb|Dow Jones Index in constant dollars relative to the price of gold. The chart is a good reflection of living standards throughout the period.]]

[[Image:115yeardowgoldratio.gif|right|200px|thumb|Dow Jones Index in constant dollars relative to the price of gold. The chart is a good reflection of living standards throughout the period.]]

The '''New Ordeal''' describes the period of time between 1929 and 1949, when the American economy finally recovered from the [[Crash of '29]].  It encompasses the early stages of the [[Great Depression]] during President [[Herbert Hoover]]'s term and the four terms of  [[Franklin D. Roosevelt]], the final term having been administered mostly by his successor, President [[Harry S. Truman]]. The New Ordeal also is sometimes refered to as the '''Great Ordeal''' or simply the '''Ordeal'''.   

The '''New Ordeal''' describes the period of time between 1929 and 1949, when the American economy finally recovered from the [[Crash of '29]].  It encompasses the four presidential terms U.S. President [[Franklin D. Roosevelt]] had been elected to, the final term having been administered mostly by his successor, President [[Harry S. Truman]].   The New Ordeal also is sometimes refered to as the '''Great Ordeal''' or simply the '''Ordeal'''.   

==Double-dip recession==

==Double-dip recession==

New capital made available for investment amounted to $348,000,000 in 1935. This was less than 1/10th of the amount available in 1929.  By contrast, the British economy had nearly recovered to its 1929 levels by 1935, and the amount available for investment was almost twice as much as the United States.

New capital made available for investment amounted to $348,000,000 in 1935. This was less than 1/10th of the amount available in 1929.  By contrast, the British economy had nearly recovered to its 1929 levels by 1935, and the amount available for investment was almost twice as much as the United States.

===Stagnant growth: Britian recovers while U.S. remains ensnared===

===Years of stagnation===

New capital made available for investment amounted to $348,000,000 in 1935. This was less than 1/10th of the amount available in 1929.  By contrast, the British economy had nearly recovered to its 1929 levels by 1935, and the amount available for investment was almost twice as much as the United States.

New capital made available for investment amounted to $348,000,000 in 1935. This was less than 1/10th of the amount available in 1929.  By contrast, the British economy had nearly recovered to its 1929 levels by 1935, and the amount available for investment was almost twice as much as the United States.

The country now reached a greater crisis than in 1933. The public debt, which was $22 billion when Roosevelt took office and was a heritage of [[World War I]], now was $37 billion. Taxes had been more than doubled by Roosevelt. By April 1938 unemployment reached several thousand more than when Roosevelt was elected in 1932. This was not Hoover’s Depression but Roosevelt’s Depression. Voices began to speak up suggesting after all Hoover may have known what he was doing, but here, nine years after the Depression began the fundamental condition of the country was no further advanced than it was at the end of Hoover's three year struggle with it.

The country now reached a greater crisis than in 1933. The public debt, which was $22 billion when Roosevelt took office and was a heritage of [[World War I]], now was $37 billion. Taxes had been more than doubled by Roosevelt. By April 1938 unemployment reached several thousand more than when Roosevelt was elected in 1932. This was not Hoover’s Depression but Roosevelt’s Depression. Voices began to speak up suggesting after all Hoover may have known what he was doing, but here, nine years after the Depression began the fundamental condition of the country was no further advanced than it was at the end of Hoover's three year struggle with it.

Making provision for war increased business profits.  In 1936 Roosevelt had said, "If we face the choice of profits or peace, the nation will answer – must answer - 'We choose peace'.  It is the duty of all of us to encourage such a body of public opinion in this country that the answer will be clear." <ref>''Getting Us into War'', Porter Sargent Publisher: P. Sargent, Boston, 1941. [http://americandeception.com/index.php?action=downloadpdf&photo=/PDFsml_AD/Getting_Us_Into_War-Porter_Sargent-1941-640pgs-POL.sml.pdf&id=218&PHPSESSID=03d3557b41f249f71349e6d730cc8498 ''No More Millionaires''], pg. 372 pdf</ref>  By 1938 Roosevelt embarked on a massive defense appropriations buildup; the Administration would advance 30% to a defense contractor when placing an order. The National City Bank reported an increase of overall business profits in the year 1939 over 1938 of 63.6%, and in its December 1940 Bulletin showed for 284 companies "directly affected by war and defense program" a rise of 79.2%. The ''Wall Street Journal'' reported, "Betterment in profits was naturally more pronounced, as a rule, in those industries benefiting directly or indirectly from the European conflict." <ref>''Wall Street Journal'', May 3, 1940.</ref>

 

Making provision for war increased business profits.  In 1936 Roosevelt had said, "If we face the choice of profits or peace, the nation will answer – must answer - 'We choose peace'.  It is the duty of all of us to encourage such a body of public opinion in this country that the answer will be clear." <ref>''Getting Us into War'', Porter Sargent Publisher: P. Sargent, Boston, 1941. [http://americandeception.com/index.php?action=downloadpdf&photo=/PDFsml_AD/Getting_Us_Into_War-Porter_Sargent-1941-640pgs-POL.sml.pdf&id=218&PHPSESSID=03d3557b41f249f71349e6d730cc8498 ''No More Millionaires''], pg. 372 pdf</ref><ref>[http://thinkmarkets.wordpress.com/2010/08/10/%E2%80%9Cnever-let-a-crisis-go-to-waste%E2%80%9D/ Never Let a Crisis Go to Waste]'', Mario Rizzo, August 10, 2010.</ref>   

By 1938 Roosevelt embarked on a massive defense appropriations buildup; the Administration would advance 30% to a defense contractor when placing an order. The National City Bank reported an increase of overall business profits in the year 1939 over 1938 of 63.6%, and in its December 1940 Bulletin showed for 284 companies "directly affected by war and defense program" a rise of 79.2%. The ''Wall Street Journal'' reported, "Betterment in profits was naturally more pronounced, as a rule, in those industries benefiting directly or indirectly from the European conflict." <ref>''Wall Street Journal'', May 3, 1940.</ref>

[[Curtiss-Wright Aircraft]], to enlarge its plant, received a loan of $92 million at 4%. [[I. F. Stone]] of ''[[The Nation]]'' magazine wrote,  

[[Curtiss-Wright Aircraft]], to enlarge its plant, received a loan of $92 million at 4%. [[I. F. Stone]] of ''[[The Nation]]'' magazine wrote,