The Mechanics of Recovery: Consumption vs. Investment
Role of the Capital Goods Industries in Recovery
In the united states, as in other capitalist countries, sustained recovery from depression has usually been marked by a revival of the capital market and a resumption, with the proceeds of new security issues, of large-scale investment in fixed capital goods. New security issues have fallen during the present year to the lowest level in a generation and, notwithstanding the improvement in other lines, the capital market as yet gives few signs of recovery.
In the present depression, as in past depressions, it has been the heavy industries producing durable or capital goods which have suffered the most severe declines in output and have contributed most largely to the prevailing unemployment. The ...