ABSTRACT
In an ordinary business cycle, which results in a limited depression for a few years, certain procedures have been thought to be helpful. Had the deflation route been continued, a much greater decline in wages, prices of manufactured goods, and costs of distribution would have occurred, with some recovery in basic commodities. The business of the nation is best, and the standard of living is highest, when a large volume of product goes through the channels of trade. Public interest moves slowly, but it drives the government to action long after many individuals have acted on their own initiative. Theory of recovery is that the reduced demand can be overcome by advertizing. The State of New York passed a law taxing all milk to establish a fund for advertizing milk. Some persons believe that the way to overcome a depression is for the government to spend enough to replace a large part of the curtailed private spending.
