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Essay: New Ordeal

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===Managerial state===
During the Second World War, the US economy, due to the demands of the conflict, became very much a command economy. Ford, Chrysler, General Motors, Packard, and Studebaker all ceased the production of civilian automobiles by the end of February, 1942. Instead, they fulfilled government contracts that required them to build tanks, aircraft, and other vehicles for military use. They also turned out engines for aviation and naval use.Other durable Durable goods were not easily obtainable by civilians during the conflict. Gibson refrigerator for example, still produced refrigeratorsand freezers, but only for the government. Part of their factory was dedicated to the production of gliders for carrying troops in the D-Day invasion of June, 1944.
In February 1944 Congress rejected Roosevelt's demand for a $10,500,000,000 tax increase and cut it to $2,300,000,000. Roosevelt vetoed it saying this was a "bill not for relief of the needy but of the greedy."
Senator [[Alben Barkley]], Democratic leader, rose on the floor of the Senate to say the veto was "a calculated and deliberate assault upon the legislative integrity of every member of Congress." The entire Senate united in a roar of applause. Barkley declared that after seven years of carrying the [[New Deal]] banner for Roosevelt, he would resign his post as Democratic majority leader and he called on every member of the Congress to preserve its self respect and override the veto. The Senate overrode it 72 to 14 and the House 299 to 95.
==Crash of 1937==
During the Great Bear Market from 1929 to 1940, the [[Dow Jones Industrial Average]] (DJIA) had rallies of 48% (from November 13, 1929, to April 17, 1930), 94% (July 8, 1932, to September 7 of that year), 121% (February 27, 1933, to February 5, 1934), 127% (July 26, 1934, to March 10, 1937), 60% (March 31, 1938, to November 12 of that year), and 28% (April 8, 1939, to September 12 of that year). Yet, on April 28, 1942, during the early phase of US involvement in [[World War II]], the DJIA was still at only 92.92, 76% below its September 3, 1929, high of 381.17. <ref>Daniel Turov, [ ''Mixed Message,''] Barron’s, 21 May 2001, quoted in the Liethner Letter, Issue 1826 June 2001, retrieved 11 June 2007.</ref>
===Double-dip recession===
When FDR was inaugurated for his second term in March 1937 [[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 [[U.S. Treasury]] reported relief payments were less than in the same period the preceding 12 months, however this was not so. The Treasury merely shifted relief payments to other accounts. Relief payments were, in fact, larger than the year before. The Treasury made a practice of "cooking the books" to produce phony numbers. Stock prices declined and by September the dire reality could be no longer hidden. By the end of October 1937 the market crashed. The U.S budget was running a [[deficit]] at the time of $300,000,000 a month.
===The Second New Deal===
:'''''Main article:'' [[Keynesian]]ism'''
1946 DJIA declined 24.6% over 37 months. There was only one crash phase (August–September 1946), and the bottom was hit within 4 months. But the market moved sideways for almost three years and tested the 1946 low area three times. The final time was in 1949, after which the market rose almost without interruption for the next 12 years (160 to 741 in 1961).
==Further reading==
*[ ''Road to Serfdom'',] Friedrich A. Hayek, Reader's Digest Condensed Version, April 1945.
*[ ''Other People's Money''], John T. Flynn, The New Republic, February 20, 1935.
*''The New Ordeal'', Freeman Tilden, The North American Review, v. 239, February 1935, p. 131-7.
*''Ordeal by Planning'', John Jewkes, Macmillan, New York, 1948. []
*''The New Ordeal by Planning'', John Jewkes, Macmillan and Co., Ltd., 1968.
*''The Ordeal of Total War, 1939-1945'', Gordon Wright, New York, Evanston, and London, Harper & Row, 1968.
*''Franklin D. Roosevelt: The Ordeal'', Frank Freidel, Boston: Little, Brown and Company, 1954.
[[Category:United States History]]
[[Category:New Deal]]
[[Category:Great Depression]]