Themiclesian economic miracle

The Themiclesian economic miracle is a period of remarkable rapid economic growth in Themiclesia, generally reckoned between the years 1948 and 1968. The growth reached its peak in the late 50s, which is also when the term first appeared. The rate at which the Themiclesian economy expanded can partly be attributed to factors such as pre-war depression, loss of life and territory during the war, and labour removed from the market by conscription, all of which made the economy prior to and during the early stages of conscription smaller than it was reasoned to be. The positive causes include a capital market awash with funds due to renewed OS investment and liberalization of Trans-Halu'an trade. Factors that contribute permanently to the work force's aptitude include widespread public education, policies that encouraged adequate savings, and an international environment that favoured commerce. The Trans-Hemithean Railway is one such device, which opened Themiclesian enterprises to vast reserves of raw materials and unserviced markets. The Four Cattes of Hemithea (Themiclesia, Maverica, Menghe, Dayashina) all developed as part of this interconnected economy.

The economic miracle was briefly interrupted in 1960–62 due to the "Great Maverican Scare", in which the Maverican government was overthrown by communist forces; rhetoric indicating that an invasion was imminent fostered at leasts three separate stock market crashes, which in turn triggered defaults and bankruptcies. Nevertheless, by investing in the defence industry, the Themiclesian government contained the public insecurity and created employment. After 1962, the economy continued to expand, though not at the same pace as it did prior to the Great Maverican Scare. By 1968, uncertainties in the international financial market created hesitance in Themiclesia, whose currency was pegged to the gold-backed OS Dollar; while leaders internationally attempted to stabilize the exchange price at OS$35 per troy oz of gold, gold prices on the open market gradually waxed, leading to the Federal Reserve to abandon the convertible standard in favour of a pure fiat currency. In 1970, the Themiclesian was floated on the international market, which created a mediocre export environment due to its fluctuating value; combined with slow growth in the previous year, the press in 1970 was expressing considerable doubt in the soundness of the economy in the short term. In view of future developments, 1968 was named as the final year of the economic miracle retroactively.

Prelude

The Pan-Septentrion War for Themiclesia had essentially been a period of continuous war for 20 years, starting with the Prairie War in 1925 and ending with the surrender of Dayashina in 1946. The war had a measurable impact on the economy for its entire duration. While the Prairie War itself can be viewed as a limited war with a clear maximum of resources that the government was willing to invest, the belligerent joinder of Menghe in 1933 contributed to the negative outlook of the economy. Moreover, the OS economy had suffered an unpreceded depression since October, 1929, and the resulting economic contraction and reduced investment and consumption was being felt in Themiclesia. Unemployment rose considerably between 1931 and 1933, and, despite a brief recovery in 1934/35, continued to worsen in 1936, which was when Menghean forces breached the border. The incumbent Prime Minister publicly admitted the failure of his diplomatic efforts at negotiating a settlement with Menghe, resulting in a general election, which installed a pro-conscription head of government. Conscription, while useful for keeping unemployed men off the streets, did not help jump-start the economy; in fact, it further removed workers from their productive positions. This is connected to the dramatic contraction of the economy, by 8%, in 1936; the government sought to rectify this issue by prioritizing the conscription of the unemployed and by borrowing foreign and domestic credit to begin the production of armaments to support defence.

In 1937, the government employed over 300,000 individuals to produce various war-related supplies; the economy reversed its declination and expanded by 1% that year. Combined with the stalling advance of the Menghean forces, some investors felt more at ease to increase their interests in industry, which contributed to the 3% economic growth in 1938. Yet the completion of the Railway of Death between Menghe and Themiclesia's west, traversing the desert, enabled the invading power to transport and support a previously-impossible number of soldiers, which broke the stalemate in the middle of 1939. The Menghean advance eventually threatened the capital city at Kien-k'ang in 1941, but not before they had occupied vast swathes of farmland that the government had recently improved by means of irragation, to the end of increasing productivity. The arrival of the Dayashinese to aid in the siege of Kien-k'ang only further demoralized the Themiclesian public, many of whom withdrew their stakes and tried to preserve wealth in foreign currency or bullion. But in a surprising stroke of luck, the Themiclesian Army repelled the Imperial Menghean Army and Imperial Dayashinese Army in July, 1941, at the very gates of the capital city. Later in the year, the arrival of the OS Army and large numbers of volunteers from Rajamaan Yhdysvallat and Nukkumaa renewed hope in the country's prospects. With victories at Kraw-tju and other places, territories were recovered and capital equipment restored to productivity.

The remainder of the war was proceeded to similar effect between 1942 and 1944. By 1945, the Menghean Army had been pushed into Menghe proper, but restoration of existing infrastructure, most of which were left intact (if inactive) during the occupation, which in some places lasted as long as seven to eight years, continued to contribute to the "expansion" of the economy. The war having ended in 1946, the government attempted to utilize the existing organization of soldiers to improve and build infrastructure, in a policy called Civil Use of Military Ability (軍力民用), which averted the acute issue of finding employment for almost a million men being discharged from conscription to a restructuring economy that was rapidly losing employment due to sharply diminishing demand for war-time goods. When the ex-conscripts did find employment, the government dismissed them from this government construction programme. Though the policy was sound, the matter still resulted in a non-growing economy during 1946.