Because the industrial cycles that have occurred since 1945 have unfolded in a very different political environment than those before 1945, I will devote this post to examining these extremely important political changes.
From the recession of 1937-38 to the end of World War II
The upswing in the industrial cycle—interrupted by the Roosevelt deflation—resumed by mid-1938 as the administration and Federal Reserve System quickly reversed their deflationary measures. However, the recovery that began in mid-1938 started at a much lower level than that of mid-1937 when the Roosevelt recession began. Then before the industrial cycle could reach a new boom—or even get very far into the stage of average prosperity—the war economy took over. As we have already seen, a full-scale war economy suppresses the industrial cycle by suppressing the normal process of capitalist expanded reproduction.