World Events

Abstract

Private enterprise economy, during at least two centuries, has passed through alternating periods of prosperity and depression. These boom-bust experiences have consisted of minor ups and downs such as the cycle of 1953-1956, of major disturbances like the cycle from the peak of prosperity in 1928 through the depression of the 1930s, the long-term expansions and contractions expressed primarily in the rise and fall of prices. The high production, frantic spending, and reckless investment in new capital goods which have marked the present boom are a culmination of the period of major economic expansion associated with the wars of 1936-1956, and of the longterm price expansion associated with the cycle of wars that began in the decade 1894-1905.

This article can also be found at the Monthly Review website, where most recent articles are published in full.

Click here to purchase a PDF version of this article at the Monthly Review website.