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America's Ability To Produce Goods, Then And Now - Research Paper Example

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The capacity of America to produce goods is based upon several factors. Technology is considered an important factor and clearly defines an increase or decrease in a company’s capacity to produce goods. …
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Americas Ability To Produce Goods, Then And Now
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Download file to see previous pages The concept of capacity of goods can be defined by defining five propositions. First of these proposition is the maximum attainable production. Second proposition is that production is needed to be maximized because of several economic factors and not on the basis of technological factor. Third proposition is that there are varieties of answers which can be given to the theory of “maximum attainable production”. The answer to this proposition can be defined on the basis of economical basis. The fourth proposition is that the investigator of the factors of capacity to produce may use certain economic factors to define this concept. The final proposition is that the estimation in the increase in output. The maximization of capacity can be studied on the basis of the technological factor as production maximization is strongly linked to capacity maximization. The plan of capacity maximization is based on the technological changes as well as the new capital investment in the manufacturing sector. American Production Capacity in Great Depression The great depression occurred in America, Europe in many other industrialized countries of the world from 1929 to 1939. The great depression affected the performance of the industries....
of that year that it was determined by the government that the investors of the stock market lost about $ 40 billion from this collapse of the stock exchange. The performance of the American economy can be seen at the time of the great depression on the basis of the economic statistics. In 1933 (at the time of the great depression), the GNP of the country decreased to half of what it was in the year 1923. The production of the industry fell to half of its production in a decade before, and also the construction of new plants decreased in the country by 90 percent. The production of the automobile industry decreased to about half of its average production, whereas the steel industry, at the time of the great depression operated at 12 percent capacity (The Depression in the United States--An Overview, 2013). Under the presidency of Herbert Hoover about 13 million Americans in the labor force lost their jobs. Out of these unemployed people about 63 percent remained unemployed for almost a year, 43 percent were unemployed for almost two years and 24 percent and 11 percent were unemployed for over three years and four years, respectively (Economic Recovery, Part II: America's Capacity to Produce, 2011). Unemployment in America during the great depression was as high as 24.1 percent, in the year 1933. This rate did not drop to until the WWII, when the rate of unemployment dropped to 14.3 percent (Timeline of the Great Depression, 2010). Wall Street Great Crash initiated financial meltdown in the year 1929, where assets worth in billions was vanished into air. The wealthy Americans who owned most of the nation’s stock faced great loss due the fall in the value of the New York stock market by 80 percent. During the great depression, two out of every five banks collapsed ...Download file to see next pages Read More
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