3 Discussions
Zelong Lyu
Module 5 Discussion
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I think that during the Great Depression, one of the important reasons for the slow economic recovery was the government's non-intervention. During the Great Depression, everyone was unwilling to consume, which led to a decline in total economic expenditure and a large-scale reduction in income and employment. In this case, economic activity reaches a relatively low equilibrium point, while the unemployment rate rises to a relatively high equilibrium point. Since the free market cannot provide enough investment to maintain production at a normal level, so that people can't get jobs, the government must borrow money to keep the economy running. However, the US government initially believed that the government should not interfere in the market. It was not until later that Roosevelt supported public utilities, provided agricultural subsidies, and tried multiple methods to revive the U.S. economy. In addition, another cause of the Great Depression was that there was a global excess of investment in heavy industry, and people generally had no money to consume. In this case, the government needs to redistribute consumption power. This includes restricting investment in heavy industry and giving consumers money for consumption. In the early days of the Great Depression, the government did not consider reasonable intervention in this area, which led to a significant increase in the duration and intensity of the Great Depression.
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Ryan Todd
Module 5 Discussion
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There are two main reason for the very slow economic recovery during the Great Depression. the first one is the fact that there was little to no government intervention during the crash which left everyone helpless and no one to turn to. the governemnt had low finances as it was so they did not have much to spendin relfief. the next reason is the start of World War 2 in 1939. the U.S. had just started to pull itself out of the Great Depression but the start of the war nearly criplled the already weakened and fragile U.S. economy.
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