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Essay: New Ordeal

185 bytes removed, 07:27, September 1, 2011
[[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.]]
The '''New Ordeal''' is 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 referred to as the '''Great Ordeal''' or simply the '''Ordeal'''.
During the twenty years of the New Ordeal, America experienced 2 deep two recessions, or essentially a second depression within the [[Great Depression]], and [[World War II]], a calamity that which claimed the lives of 55 million people worldwide. Many of the nations involved in World War II resorted to "economic planning", " as Economist [[Friedrich Hayek]] referred to it, to address the so-called "crisis in capitalism" in the 1930s.
The 1929-1949 recession Depression had within it a recession from 1937-19431938; 1933 to 1937 were recovery years stimulated by the [[New Deal]] government spending. However by 1937 the nation US economy had nowhere near not recovered to where it was in the levels of 1929. Manufacturing demand stimulated by WWII led to the 19431941-1949 recovery, where finally, in 1949, the New York Stock Exchange recovered to the level it had been at 1929.
In from 1929 -1932, the DJIA declined 90.0% over a duration of 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 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.