[Marxism] Did World War Two end the Great Depression?
dwaltersmia at gmail.com
Wed Sep 28 18:18:36 MDT 2011
Lüko Willms wrote:
You only look at the United States, without taking the rest of the world
> The war did destroy huge amounts of capital, so that a new start of
> capitalist production could count on a higher return on capital.
And Manual G. on Louis' blog wrote:
It is interesting to note that the value of the market represented by the
> New York Stock Exchange did not recover its value at its 1929 peak (before
> the October crash) until 1953.
I'm not sure why anyone looks at the price of stocks. In 1929 they were way
over valued and not reflective of the state of the economy at all. There is
a tendency among Marxists to over focus on "stock prices" when they are at
best a pale reflection of profitability, certainly not real growth and,
certainly in 1929 basically an index of speculation, not goods and services.
The 'value' of the 1929 stock market is based on exchange value for the
paper. Nothing more, nothing less. If one looks at when it was "lower" than
1929, say, 1947, you see the US outputting more machinery, steel, power
plants, farm output, and more people employed in producing surplus value at
greater quantities than you did in 1929.
I think even from the point of view of the post 1938 rearmament period you
see it built upon a based on previous capital investment that would not of
occurred left to capitalism own devices but was stimulated *in part* by New
Deal investments and demand.
Just a few thoughts on this.
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