Roosevelt Balances The Budget, Recession Ensues
Roosevelt fears an unbalanced budget and cuts spending. In the summer, the nation plunges into another recession. Despite this, the yearly GNP rises 5.0%, and unemployment falls to 14.3%.
Britain becomes the third nation to recover as it begins deficit spending in preparation for war.
The yearlong recession results in GNP falling 4.5%, and unemployment rising to 19.0%.
Ralph Nelson Elliott first publishes the refined results of his studies in a monograph titled "The Wave Principle".
Professor Kondratieff's sentence is reviewed and he received the death penalty. It is speculated that he was killed the same year.
WWII begins with Hitler's invasion of Poland.
Unemployment falls to 17.2%.
Ralph Nelson Elliott detailed the "Elliott Wave Theory" in a series of articles in Financial World, which states that stock prices are governed by cycles founded upon the Fibonacci series (1-2-3-5-8-13-21...). This theory was based on his observation of the stock market in the late 1920's.
According to the Elliott Wave Theory, stock prices tend to move in a predetermined number of waves consistent with the Fibonacci series. Specifically, Elliott believed the market moved in five distinct waves on the upside and three distinct on the downside.
US National debt $42,967,531,037.