An analysis of the aphorism of the roaring twenties in america
This obvious fact did not mean, though, that Wall Street was not absorbing funds normally available for productive purposes. All this may be statistically correct, but it is hardly satisfying to the historical appetite. All other things being equal, this would be to the good. Not only did the collapse expose men who worshiped the god of the marketplace to ridicule, but it also severely undermined classical economics. Although much of what had been accomplished in the nation had been the result of cooperative efforts, by the s reverence for the freely operating marketplace was high. The host of margin buyers could be wiped out quickly. The limits of his own capacity for suffering were not severely tested. This policy had had an obvious stabilizing influence. A third basis for dividing interpretations of the Depression concerns fundamental economic philosophy. He bought for exactly the same reason. Surely they were not in the twenties. The man who owned the well would own the wealth of the city.
The economy as a whole could be harmed by a sharp reduction in exports, but farming could be devastated by such an export drop. It was enough to make a red-blooded American uneasy, even in the midst of unprecedented prosperity. In there was one car on the road for every five Americans.
The Depression was, after all, a worldwide phenomenon. The debate over what produced the Great Depression is, however, not simply a convenient political weapon.
Advertising often creates its own demand, but supply does not. One distinction is between those who seek to lay the blame on, or at least attach primary importance to, a single cause, and those who maintain that no one factor was responsible.
The remaining solution was, if anything, more repulsive to the powers-that-be than were peacetime deficits: higher taxes on the rich.
Why was the 1920s called the roaring twenties
The supply-side interpretation of the Depression must be addressed before we get into our own. This change obligated the country to take more responsibility for the smooth operation of the international economy and to make adjustments in its other policies, including exports and tariffs. During the war the American government, particularly in the person of Food Administrator Hoover, encouraged a vast increase in agricultural production. If the adherents of this creed were ever to emerge from their catacombs and win more votes than Barry Goldwater did in , they would have to find some way to explain the Depression on their own terms. A third basis for dividing interpretations of the Depression concerns fundamental economic philosophy. He bought for exactly the same reason. As with a swamp lot in Florida, the quality of a stock was largely immaterial, as long as prices continued to rise. Although American financiers had already made some large foreign loans before this, the Dawes loan started American foreign lending on a massive scale. Undoubtedly the most prevalent view of the causes of the Depression has been that which focuses upon a decline in spending—that is, in consumption, investment, or both. Beginning in , though, the already overloaded ship had new weights dumped upon it. Most of the money used for speculation was held for that purpose on a continuing basis and was not offered for productive investment. Soon it was over, though. The miracle of leverage when prices were rising would operate in reverse if prices fell. The demand side, the question of distribution, cannot be ignored.
In the end, though, the greatest weight must be assigned to the effects of an income distribution that was bad and getting worse.
The estimates for three years earlier were that the same corporations held 45 percent of corporate and less than 20 percent of all national wealth.
This attempt to eat the world and have it, too, was the epitome of a self-defeating policy.
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