And why do you produce too much? It is precisely because of the advantages of new energy sources such as electricity that the production cost is greatly reduced and the production efficiency is extremely inflated. And why does everyone have no money? It also has something to do with this. More and more jobs do not need manpower, and entrepreneurs are unwilling to increase their wages in pursuit of higher profits. Therefore, on the one hand, production is in full swing, on the other hand, workers are constantly laid off, and those who are on the job have not increased their wages.
This is one reason: new energy and new technologies such as electricity bring about extreme expansion of production capacity and decline of wages rather than rise. Another reason is urbanization, where a large number of farmers are driven to cities without land. At that time, the land policy was to encourage investment and obtain higher land rent, so the landowner wanted to sell it to enterprises or real estate, rather than contracting farmers to farm. Therefore, in a country like China, similar problems will not occur in the short term, because most of our land is still used for agriculture, and the proportion of urbanization is not high, which can satisfy the self-sufficiency of most people and will not cause major social unrest.
The United States is different, because there is very little arable land in the United States, and American farmers are not as hardworking as China farmers. They can cultivate terraced fields and barren hills, and everyone is called into the city by the beautiful call of urbanization.
Another reason is that there was almost no social security at that time, which belonged to the government.
At present, China's big cities actually have similar problems, but they have not become a comprehensive phenomenon. Before the new economic model matures, the old one should not be abandoned easily. At present, China is also in the period of economic transformation, and it is right to change from labor-intensive to technology-intensive. To make a soft landing, a variety of economic forms coexist in one period, instead of everyone scrambling to make a model. The economic reform of the former Soviet Union is also the reason. The rural economy is basically bankrupt, and the urban economy is not so mature.
In order to solve the economic crisis, Roosevelt's New Deal did two things: intervening in the economy and developing social security. It can also be said that it is closer to the root of the problem. This new policy has not gone back, and it has not allowed everyone to go back to farming. This is an adventure, and the adventure is successful. Of course, the important reason for his success was World War II.