AMH 1010 Lecture Notes - Lecture 15: Franklin D. Roosevelt, Underconsumption, Underemployment

• School: SCFMS, SCF
• Department: American History
• Course: AMH 1010
• Professor: Thomas Honsa

Document Summary

The numbers- great depression started by collapse of stock prices in new york in 1929. When a stock market collapses companies lose value. In early 1929, big investors realized there were 3 fundamental flaws in the us economy: Large amounts of harvest caused a dust bowl, which was a dry spell that made it impossible to farm, at least of of population were farmers. Belief that a production-based economy would be optimal; overproduction of durable products. And then there was income inequality, where less people have more $ Everyone starts selling their stocks and thus lowers the price. Nowadays, if dow-jones industrial avg drops by 10%, ny stock exchange pulls the plug. This industrial avg is based on the biggest companies in u. s. Money is like blood, it don"t work unless it moves. Unemployment went up, gross national product went down. 24. 9% unemployment, where 8% is a national emergency. Death rates & suicide rates went up.