This book presents an alternative view of the Stock Market Boom and Crash of 1929 as having resulted from government intervention, specifically from a case of flawed government policy in the form of the Republican party's 1928 election promise of an upward tariff revisionathe Smoot-Hawley Tariff Bill. As such, the stock market in particular and the market mechanism in general were not to blame, government was. Where the market was to blame, however, was in its reaction to the massive technology shock that was electric power-based extremely-high-throughput, continuous-flow mass production techniques (EHTCFPT) pioneered at the Ford Motor Company's Highland Park plant in Detroit, Michigan. Specifically, aggregate income and expenditure failed to rise commensurately with vastly increased productive capacity, resulting in under income.Separating the two was a debate that is as real today as it was in the 1920s, namely that over market clearing versus non market clearing. Opponents implicitly assumed that markets cleared, and that firms operated at economic capacity.
|Title||:||How the Republicans Caused the Stock Market Crash of 1929|
|Publisher||:||iUniverse - 2005-12|