ABSTRACT

The fading enthusiasm for rationalization evident in 1930-31 was not to be reversed. Indeed, the word itself was heard less and less after the world slump. Rationalization's earlier popularity had been bound up with the notion of an export and employment revival occurring under the prevailing system of political economy. The events of 1929-32 shattered any remaining illusions on this score and changed the terms of the contemporary economic policy debate. Yet this did not mean that industrial reorganization ceased to matter as few shared Keynes's faith in the curative power of macroeconomic policy alone. 1 Indeed, the subject was to feature prominently in contemporary writings on 'planning', which became the new buzzword for the post-slump period.