{
  "id": 12324181,
  "title": "The Great Accretion and the Great Depression",
  "url": "https://urgent.news/2026/10/06/the-great-accretion-and-the-great-depression",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-06T07:06:24.000Z",
  "source": {
    "name": "Marginal Revolution",
    "slug": "marginal-revolution",
    "url": "https://marginalrevolution.com/marginalrevolution/2026/10/the-great-accretion-and-the-great-depression.html"
  },
  "original_language": "en",
  "account": "The Second Industrial Revolution marked the beginning of a period of optimism and rapid technological advancement in the early 20th century. The Roaring Twenties were characterized by a surge in new products and industrial processes that fueled economic growth and prosperity. However, as the decade wore on, signs of a potential crisis emerged. Economic indicators suggest that the excitement surrounding technological progress may have contributed to an over accumulation of investment, despite a slowdown in the development of new products and a saturation of demand.\n\nA recent NBER working paper by Harold L. Cole, Stefano Cravero, and Jeremy Greenwood delves into these questions. The authors propose a macroeconomic model that takes into account both process and product innovation. Through proof-of-concept simulations, the model demonstrates that these factors could indeed have played a role in triggering the Great Depression. The findings of this research provide a fresh perspective on the complex relationship between technological progress and economic downturns, shedding light on the vulnerabilities that can arise in the wake of rapid industrialization and innovation.",
  "summary": "A very old idea, returning with a vengeance: The Second Industrial Revolution sparked a wave of new products and industrial processes, fueling an optimistic Roaring Twenties. But did excitement about technological progress contribute to an over accumulation of investment, despite a slowdown in new product development and satiated demand during the 1920s? And, was this […] The post The Great…",
  "key_points": [
    "Roaring Twenties marked by new products and industrial processes",
    "Signs of potential crisis emerged in late 1920s",
    "Over accumulation of investment linked to Great Depression"
  ],
  "editors_take": "This research suggests that the excitement around technological progress can lead to over-investment, contributing to economic downturns, and offers a new perspective on the causes of the Great Depression.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}