Depression 1873

Question 1

historical interpretations of 1873 depression

Answer 1

-Saul: ‘The Myth of The Great Depression’
-argued that it was due to falling business profits not actually a depression

Question 2

relative production after 1873

Answer 2

-fall in percentage share of world trade of coal, iron and steel
-American economy grew at 400%, Germany at 300%

Question 3

complacency after 1873

Answer 3

-failure to adopt new industries such as electrical and chemical engineering
-poor investment: invested in typewriters and sewing machines

Question 4

competition after 1873

Answer 4

-other countries began to use protective tarriffs
-britain free trade
-foreign goods cheap, exports dear

Question 5

arguments against depression

Answer 5

-falling prices, a part of the long term trend due to new industries and reduced cost of production
-unemployment as low as 2% compared to 4.6% average in boom years

Question 6

growth of economy after 1873

Answer 6

-production of iron steel and coal grew
-1% overall economic growth

Question 7

facts after 1873 for economy

Answer 7

support:
-wet summer + poor harvest in 1873 marked end of golden age
-opening up of American prairies in 1870s
-unemployment 1% in 1872 to 11% in 1879 and over 10% in 80s
-poverty levels similar to periods before and after
-poorest in society suffered no change

against:
-bicycle and telephone industries developed
-