HIS 315L Lecture Notes - Lecture 14: Market Trend, Herbert Hoover, Federal Reserve System
Document Summary
Belief we out grew boom and bust cycle. People who came of age lived through the heightened security due to the great depression; the constant fear of failure , having to accept public assistance. Massive gov spending that truly ended the great depression. 1920s us ecnomy was based on mass consumption of consumer and producer goods and mass production. Cannot have mass production without mass consumption and vice versa. Masses began to consume less and less due to lack of money. Bull market is when the stock market prices are going up because people are buying. People and corporations that have deposits think a good way to make more money is to invest in the stock market. Mass consumption cannot keep up with mass production. 1% of pop in 1929 owned 36% of all the personal wealth. If the masses cannot continue to consume it wont balance. The rich can only spend so much money.
