ABSTRACT
Many people seem to think that the main approach should be through keeping costs low, and improving the psychological milieu of the business man. They seem to think that undue emphasis has been given to the providing of increased buying power in the hands of consumers by higher wages and relief payments. So far as capital creation by manufacturing and mining enterprises is concerned, it seems likely that the volume of orders is a more important incentive to capital expenditure than any other single factor. Correlation analysis indicates that manufacturing and mining capital outlays fluctuate fairly closely with the fluctuation of production in the current and the preceding year taken together. In making the correlation analysis only the data from 1923 to 1932 were used. Certainly new housing and government construction follow patterns different from that of manufacturing and mining capital outlay.
