There is a big argument what drives the economy, supply (Milton Friedman) or demand (John Maynard Keynes)? There is no incentive to invest if there is no indication that it could be sold. If people will have more money, demand will increase thereby increasing consumption and investment with the multiplying effect. Investment generates consumption generates investment etc.
Economy = Consumption + investment + Government Spending
The depression came through abundance and overproduction. They could not sell what was produced, so the multiplying effect went in reverse.
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