HIST 226 Lecture Notes - Lecture 18: Real Estate Bubble, Stock Market, Market System
17 Nov 2016
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Document Summary
Structural imbalance in the economy weak demand and excess supply. Problem was not supply, but lack of demand. Farmers made up the bulk of texas. Farmers in texas could not enter the market to buy as much as needed. Cotton was raised inefficiently: human labor over machine or animal labor. Farmers could not buy and had weak demand. More selling and buying the faster the economic growth. The economy was not moving fast enough: not enough trade or demand in the world economy. National banks were not ensured, only state banks: banks do not have enough money to immediately give customers. Banks could fail and real estate could fail. If better managed and regulated, banks could have helped avoiding the great. Role of government in causing the depression ~ taxes and lax regulation. Tax policy tended to help concentration income to the top. People at the bottom did not have enough to buy things, the wealthy invested into production factories.
