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Unformatted text preview: Economies in USA … stability title boom and bust. Slump of economy during wilson’s presidency… no evidence why… unemployment, events in Europe caused economy to fall until the war occurred and their econonmy boomed Fluxuations in economy seen as temporary… Sais law – supply creates its own demand. Each good is either demanded by ourselves or used to demand another good… demand creates more demand Need to watch out for money and over production temporarily. Always be a market for goods and labor, wages may need to come down a little bit. – JB Say Support for unions disappeared and people questioned capitalist system- Karl Marx… prices drop in 1920… good times produced bad times and vis versa … business would go under and labor will go down… boom and bust cycles, pointed out failure of cycle Schumpeter- looked at boom side of cycle, and preached capitalism as intrinsically dynamic,...
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- Spring '08
- Capitalism, Schumpeter, stability title boom, actuality John Keynes