Word: boom
(lookup in dictionary)
(lookup stats)
Dates: during 1940-1949
Sort By: most recent first
(reverse)
There were three striking paradoxes of the 1940 boom...
...which, in 1940, the rest of the world could not buy. Many farm surpluses in 1940 were higher than ever; for farm prices, "parity" remained just a slogan. Yet farm income for the year was estimated at $9 billions, highest since 1937. Thanks were due less to the production boom than to Government...
...Eeriest paradox of all was Wall Street. A capital-goods boom was under way with almost no help at all from private investment. The corporate securities markets did $1,666,805,000 of refundings during eleven months of 1940, but raised only $660,799,000 of new money. As the year ended, Wall Street, its best barometer, was huddled in the storm cellar with Confidence...
Reason for this was plain. Despite the production boom, nothing Business really wanted had been achieved. Taxes, far from easing, were made tougher by an excess-profits tax and likely to grow more so. Government spending was multiplied; the 76th Congress appropriated more than $17 billions. Interest rates on capital continued to fall. The National Labor Relations Board underwent a personnel shakeup, but Wagner Act modification was less likely than ever. Government regulation in general, previously little more than a list of "Don'ts," began to turn into positive control. Every well-editorialized reason why Business should hold back...
Knowing the economic consequences of war, businessmen naturally disliked the defense boom. They were swept downstream almost against their will, steering as cautiously as they could. They ploughed their profits back into debt retirement or new plant, drove good bargains with the Government in answer to its demands for industrial expansion. When the boom ends, this caution may help Business to face a buyer's market with efficient plant, low overhead-may ease post-war adjustments. But the engine of industry did not speed up because of confidence burning within. It was sped up from without by the energy...