Economy Recession in 1929
B. Economy Recession
Before the crisis：
1929-1934
The heated passion public flow into the speculative affairs, such as stock. A well-being anticipation of the economy The rise of stock price
His ideas towards economy:
The need create supply
Export is regarded as a kind of investment and it benefit the economy. A investment can cause series of deals to promote the prosperity 《就业、利息和货币通论》
How he did？
restrain the giant.
Main policy：improving the public benefit and
Specific policy: Draft a series of anti-monopoly law. e.g. 《antimonopoly act》 Effect: People’s wages rise, and the giants split into several companies
Cause: Many bankers sold huge amount of over-valued sharing, so the price slumped.
Effect: Let us make a contrast
billion
item
Gross Domestic Production Growth of the GDP
——In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing. 该下决心之际，最佳方式是做出决定，而不是错过他。 1901-1909
British economist
The creation “macroeconomics”宏观经济学 He advocated the use of fiscal and monetary measures to mitigate the adverse effects of economic recessions and depressions.
The 26th US president
What crisis Theodore faces：
While monopoly greatly promote the growth of the GDP, its negative effect is far beyond the minor benefit…. The monopoly consequence is the widening gap between the Rich and poor, disorder competition, and diversified social conflicts.
IV. 1935-1945
War 2rd
Franklin Delano Roosevelt
What’s monopoly?
Generally speaking
Definition: A specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it.
A. One company control all the industry
Monopoly Game
B. They can sell at any price they want
C. There is no competition in the industry
monopoly
Theodore Roosevelt
Something about US’s economy
category
times
I. 1900-1911
II. 1912-1929 III. 1929-1934
Social Theme
monopoห้องสมุดไป่ตู้y 垄断
invest recession
the leader
Theodore Roosevelt
Herbert Hoover Franklin Delano Roosevelt
1929 1930 1931 103.6 91.2 76.5
1932 58.7
Gross national production
Trade surplus（贸易顺差）
N.A. -12% -16.1% -23.2% 104.4 91.9 77 95.1 0.4 0.3 0 0.1
John Maynard Keynes (1883－1946)