ve read a theory. [By around 1920, especially in the United States, automobiles, railroads, and agricultural machinery had become widespread, greatly improving agricultural productivity and transportability. As a result, the price of grain has fallen, but on the other hand, no matter how cheap the grain is, the amount humans eat does not increase. This led to a fall in grain prices, which spread to other sectors and led to the Great Depression of 1929. ]. This may be natural since historically, agriculture and the transportation of products were carried out using human power and cows and horses. In short, the supply capacity, which had never existed before then, rapidly became excessive, and the balance between supply and demand collapsed.
At the time, the U.S. central bank lowered interest rates, and the government sought to support the economy with public works projects such as the Hoover Dam.
In modern times, if nuclear fusion were to be realized on a large scale, energy costs would become extremely low and it would have a major impact on the economy, but this is still a long way off. What do you all think?
I disagree with that theory of the Great Depression, as it requires a failure of Say's Law -- the law which says that you always pay for goods with the proceeds of prior production (you always produce something valued by others, before you can buy something you personally value).
ve read a theory. [By around 1920, especially in the United States, automobiles, railroads, and agricultural machinery had become widespread, greatly improving agricultural productivity and transportability. As a result, the price of grain has fallen, but on the other hand, no matter how cheap the grain is, the amount humans eat does not increase. This led to a fall in grain prices, which spread to other sectors and led to the Great Depression of 1929. ]. This may be natural since historically, agriculture and the transportation of products were carried out using human power and cows and horses. In short, the supply capacity, which had never existed before then, rapidly became excessive, and the balance between supply and demand collapsed.
At the time, the U.S. central bank lowered interest rates, and the government sought to support the economy with public works projects such as the Hoover Dam.
In modern times, if nuclear fusion were to be realized on a large scale, energy costs would become extremely low and it would have a major impact on the economy, but this is still a long way off. What do you all think?
I disagree with that theory of the Great Depression, as it requires a failure of Say's Law -- the law which says that you always pay for goods with the proceeds of prior production (you always produce something valued by others, before you can buy something you personally value).