Iqbal: American history circa 1873 +/-...
I am not a history sponge, and so the knowledge is pathetic, but...
Back then, technological improvements in farming, and the opening of the western frontier, caused tremendous improvements in farm productivity, causing huge increases in harvests, then causing commodity prices to collapse.
In addition, since technology reduced the need for hands on the farm, the labour moved to the cities, and took factory jobs. As a result, their earnings allowed them to place high demands on industry for goods of all kinds.
Factories were also undergoing tremendous advances in technologies, and with the addition of the new labour pool, were creating huge amounts of product outputs, at lower and lower production costs, and lower and lower selling costs, even in the face of ever rising demand.
If memory serves correctly, this was a similar situation of absolute full employment, huge demands for goods, but with deflation in cost of all products.
I would appreciate very much someone poking a hole in this summary, or adding what came next, and how things got resolved...
SP
oh, and, understood. |
