Changes

In 1929 the DJIA declined 90.0% over a duration 34 months. Six successive market crashes comprised this famed bear market: (1) September to November 1929 (DJIA fell 40% in this first phase). (2) April to June 1930. (3) September to December 1930. (4) March to May 1931. (5) July to January 1932. (6) March to July 1932. A new bull market then started immediately, as did a business recovery.

In 1929 the DJIA declined 90.0% over a duration 34 months. Six successive market crashes comprised this famed bear market: (1) September to November 1929 (DJIA fell 40% in this first phase). (2) April to June 1930. (3) September to December 1930. (4) March to May 1931. (5) July to January 1932. (6) March to July 1932. A new bull market then started immediately, as did a business recovery.

Business had topped out mildly, a month before the first crash; a gradual mild decline continued to April 1930, then fell sharply into a depression simultaneously with the end of the 1930 stock market rally. The business decline halted in December 1930, stayed level for 6 months, then plunged again in steep economic decline that didn’t lose its downward momentum for a full

Business had topped out mildly, a month before the first crash; a gradual mild decline continued to April 1930, then fell sharply into a depression simultaneously with the end of the 1930 stock market rally. The business decline halted in December 1930, stayed level for 6 months, then plunged again in steep economic decline that didn’t lose its downward momentum for a full year, until July 1932. Business improved intermittently thereafter but still remained at depression levels through most of the decade of the 1930s except for a short recovery in 1936–37.

year, until July 1932. Business improved intermittently thereafter but still remained at depression levels through most of the decade of the 1930s except for a short recovery in 1936–37.

In 1934 a fall of 24.1% in the DJIA began again over 9 months. Then the market took seven more months to get back up to where 1934 began.

In 1934 a fall of 24.1% in the DJIA began again over 9 months. Then the market took seven more months to get back up to where 1934 began.

===Crash of 1937===

==Economic planning==

 

 

==Crash of 1937==

1937 DJIA declined 51.8% over 56 months. There were five crash phases: (1) August to November (DJIA fell 40% in this first phase). (2) February to March 1938. (3) January to April 1939. (4) May 1940. (5) October 1941 to April 1942. Business peaked out and fell violently, simultaneously with stocks. Economic indicators bottomed out 9 months later (May 1938). The recovery began mildly at first, but was later boosted by the World War II production boom which eventually lifted the country out of the Great Depression of the 1930s. The period 1941–42 contained the longest nonstop downswing crash (7 1/2 months) in history. Certain analysts call this two separate bear markets, one from September 1937 to March 1938, and the second from May 1940 to April 1942.  

1937 DJIA declined 51.8% over 56 months. There were five crash phases: (1) August to November (DJIA fell 40% in this first phase). (2) February to March 1938. (3) January to April 1939. (4) May 1940. (5) October 1941 to April 1942. Business peaked out and fell violently, simultaneously with stocks. Economic indicators bottomed out 9 months later (May 1938). The recovery began mildly at first, but was later boosted by the World War II production boom which eventually lifted the country out of the Great Depression of the 1930s. The period 1941–42 contained the longest nonstop downswing crash (7 1/2 months) in history. Certain analysts call this two separate bear markets, one from September 1937 to March 1938, and the second from May 1940 to April 1942.  

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.

==Economic planning==

===Double-dip recession===

[[Image:Economicplanning.JPG|left|250px|thumb|Criticism of Economic Planning was surpressed; F. A. Hayek's ''Road to Serfdom'' was rejected for publication 3 times "on political grounds" <ref>Richard Cockett, ''Thinking the Unthinkable: Think-Tanks and the Economic Counter-Revolution, 1931–1983'', Harper Collins, London 1995, pg. 100.</ref>]]

 

When FDR was inaugurated for his second term [[national income]], [[payroll]]s, and industrial production<ref>League of Nations Monthly Bulletin of Statistics, June, 1936. Percentage change 1929 to March 1936, United States -21.8%, rank number 13.</ref> were still 20 per cent below the 1929 figure and construction was still only about one third what it had been in 1929 when the nation had a booming economy due to massive speculation that would ultimately lead to the stock market crash. By June, 1937 the Treasury boasted relief payments were less than in the same period the preceding year. But this was not so. The Treasury made a practice of cooking the books and producing phony numbers. It merely shifted relief payments to other accounts. They were, in fact, larger than the year before. Stock prices declined and by September the reality could be no longer hidden. By the end of October the market crashed. The budget was running a [[deficit]] at the time $300,000,000 a month.  

The New Deal did not promote recovery of the economic system. It established a system which required a permanent crises to support an armament economy. The system resembled the managed and bureaucratized, state supported system of [[Germany]] before [[World War I]]. Before this regime the United States lived in a system which depended for its expansion upon private investment in private enterprise. After World War II the US lived in a system which depends for its expansion and vitality upon the government. This is a pre-war European importation - imported at the moment when it had fallen into complete disintegration in Europe.<ref>[http://www.rooseveltmyth.com/book/fdrmyth_Chapter_Fifteen___The_Roosevelt_.htm ''The Roosevelt Myth'', Book 3, Ch. 14], John T. Flynn, Fox and Wilkes, 1948.</ref>

James Burnham, a former [[Trotskyite]], discovered in 1941 that the "workers revolution" which allegedy was to overthrow the capitalist "exploiters", was in real practice  a "managerial revolution" which replaced older 19th century owners of capital with twentieth century technocrats and managers. Burnham found that "workers in this mythical 'workers' state' were, the facts showed, a subject class far more heavily exploited than the workers under capitalism," and that the new managers in a planned economy "have curbed the masses and have instituted a social structure in which they are on top, not by virtue of private property rights in the instruments of production, but through their monopoly control of a state power which has fused with the economy." <ref>James Burnham, ''The Managerial Revolution'', Indiana University Press, Bloomingham 1966.</ref>

:Main article:'' [[Class warfare]]

[[Robert H. Jackson]], Assistant Attorney General, and Secretary of the Interior [[Harold Ickes]] in December 1937 made speeches inspired by the President on the [[Marxist] inspired [[conspiratorial]] diatribe, ''America's 60 Families.'' <ref>''New Deal Chorus'', Time magazine, [http://www.time.com/time/magazine/article/0,9171,758849-1,00.html pg. 1][http://www.time.com/time/magazine/article/0,9171,758849-2,00.html pg. 2], Jan. 17, 1938.</ref>

==Double-dip recession==

===Unemployment worse than in 1933===

When FDR was inaugurated for his second term [[national income]], [[payroll]]s, and industrial production<ref>League of Nations Monthly Bulletin of Statistics, June, 1936. Percentage change 1929 to March 1936, United States -21.8%, rank number 13.</ref> were still 20 per cent below the 1929 figure and construction was still only about one third what it had been in 1929 when the nation had a booming economy due to massive speculation that would ultimately lead to the stock market crash. By June, 1937 the Treasury boasted relief payments were less than in the same period the preceding year. But this was not so. The Treasury made a practice of cooking the books and producing phony numbers. It merely shifted relief payments to other accounts. They were, in fact, larger than the year before. Stock prices declined and by September the reality could be no longer hidden. By the end of October the market crashed. The budget was running a [[deficit]] at the time $300,000,000 a month.  

DNC Chairman [[Jim Farley]] reported on a talk with Roosevelt on March 28, 1938. FDR told Farley he would have "to go in for pump priming or relief," but FDR complained he could not spend on local projects because the states and cities did not want any more buildings and institutions which they would have to pay for in perpetuity. States anad localities were having trouble paying the bills on New Deal projects already built. Many [[WPA]] projects approved by the federal government were abandoned because the states and cities could not raise the money to support them.  

FDR told [[DNC]] Chairman James Farley he would have "to go in for pump priming or relief," but as Farley explained FDR complained he could not spend on local projects because the states and cities did not want any more buildings and institutions which they would have to support in perpetuity. They were having trouble enough paying the bills of those already built. Roosevelt revealed to Farley that many [[WPA]] projects approved by the government were abandoned because the states and cities could not raise the money to support them. In the 1938 Congressional elections Harry Hopkins was spending as fast as he could without any regard to utility to meet the immediate political necessities of an election but couldn't go on indefinitely. And the whole problem was complicated by pressure from within his own party to balance the budget.

In the 1938 Congressional elections Harry Hopkins was spending as fast as he could with no regard to utility to meet the immediate political necessities of an election but the situation couldn't go on indefinitely. And the problem was complicated by pressure from within thew Democratic party to balance the budget.

[[Image:Flatgrowth.JPG|thumb|300px|right|Real Output and Growth remained stagnant throughout the New Deal largely due to government involvement. The Depression came back with a vengeance in 1937-1938.<ref>''New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis, ''Harold L. Cole and Lee E. Ohanian, Journal of Political Economy, volume 112 (2004), pages 779–816.</ref>]]

[[Image:Flatgrowth.JPG|thumb|300px|right|Real Output and Growth remained stagnant throughout the New Deal largely due to government involvement. The Depression came back with a vengeance in 1937-1938.<ref>''New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis, ''Harold L. Cole and Lee E. Ohanian, Journal of Political Economy, volume 112 (2004), pages 779–816.</ref>]]

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.

By April 1938 [[unemployment]] reached several thousand more than when Roosevelt was elected in 1932. This was now Roosevelt’s Double Dip 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.

By April 1938 [[unemployment]] reached several thousand more than when Roosevelt was elected in 1932. This was now Roosevelt’s Double Dip 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.

==Never allow a crisis to go to waste==

==Not allowing a crisis to go to waste==

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>   

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>