The video accurately portrays the two theories of the boom and bust system because it specifically compare the two theories with the two “arch-nemesis”, Friedrich August Hayek and John Maynard Keynes. During the Great Depression era, Hayek was best known for his “free-market capitalism”, while Keynes advocated that governments could control the business cycle. Hayek argued with a monetary theory, but Keynes argued that “animal spirits” were loose in the market and even in the management of the government.
During the 1920’s, economic growth/development in the U.S. occurred swiftly and then it periodically slowed down. Overproduction of goods and services, stock speculation, and many credit purchases best describes economic issues in the 1920’s.
During the 1920’s, economic growth/development in the U.S. occurred swiftly and then it periodically slowed down. Overproduction of goods and services, stock speculation, and many credit purchases best describes economic issues in the 1920’s.