ECON 319 Chapter Notes - Chapter 5: Irving Fisher, Montgomery Ward, Wall Street Crash Of 1929
9 Feb 2017
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By autumn of 1929, the economy was well intro depression. From june on, the industrial sector experienced many down falls. The stock market followed, with a great decline. The stock was therefore viewed, as a belated view of the underlying or fundamental economic situation. Cause and effect run from the economy to the stock market and never the reverse. When the market fell many wall street citizens immediately sensed the real danger, which was that income and employment, prosperity in general, would be adversely affected. Therefore, for the following years there was increasing effort and repetition on the (cid:373)atte(cid:396) that the sto(cid:272)k (cid:373)a(cid:396)ket (cid:449)as (cid:373)e(cid:396)el(cid:455) a (cid:862)f(cid:396)oth(cid:863) a(cid:374)d that p(cid:396)odu(cid:272)tio(cid:374) e(cid:373)plo(cid:455)(cid:373)e(cid:374)t a(cid:374)d spending were what mattered. Until september or october of 1929 the decline in economic activity was very modest. Some believed that the situation could still reverse. No many foresaw that production process incomes and all other indicates would continue to shrink through three long and dismal years.
