By levidesmond69 on Skatehive
The classical economics emphasis on the free market system as the best suit for the Economy and view the economy as self adjusting meaning in any situation the market always has a way of readjusting itself because people always think about what they do and always act in their own best interests. That they always make decisions that are entirely logical based on the best available information. This has now been disproved. People often behave irrationally. But during the great depression The crash of the stock market had a domino effect on the rest of the economy. As investors lost their fortunes, consumer confidence declined, and spending decreased. This led to a decline in business activity, with companies reducing production and laying off workers. As a result Unemployment skyrocketed, reaching as high as 25% in the United States at its peak, which further exacerbated the economic downturn. There are different kinds of recession. But The Great Depression was a "demand-led one". What t