Economy in the Great Depression

1. How much can statistics tell us about the collapse of the economy?
2. Which statistic do you find most telling? Explain.
   • i.e. Why is the fact that steel plants produced at only 12% of capacity significant? What more does this tell us about the economy than just declining steel production? What other industries rely on steel, etc?
   • i.e. What do falling car production figures tell us? How central was the auto to the boom of the 1920s? Are car sales an indicator of individual prosperity? When do people buy cars?
3. Which of the competing theories regarding the cause of the Depression makes most sense to you? 
4. How would you differentiate between these theories?
5. List a handful of words that sum up the basic principles of each.
   • (i.e. cycles, liquidate, natural, inevitable, aggregate demand, government spending, deficit, money supply, hoarding, free market)
6. What is the difference between micro and macro explanations for the economy’s collapse?