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Essay: New Ordeal

86 bytes added, 00:26, September 3, 2011
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During the twenty years of the New Ordealtwo decades between 1929 and 1949, America experienced two recessions, and [[World War II]], 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 Depression had within it a recession from 1937-1938; 1933 to 1937 were recovery years stimulated by the [[New Deal]] government spending. However by 1937 the US economy had not recovered to the levels of 1929. Manufacturing demand stimulated by WWII led to and the pent up post-war demand for durable consumer goods fueled the 1941-1949 recovery, where until finally, in 1949, the New York Stock Exchange recovered to reached the level it had been at prior to the crash of October, 1929.
from From 1929-1932, the DJIA declined 90.0% over a duration period 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 did not 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.
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.
==Economic planning==
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