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Great Depression ((Consequences (The GDP decreased and went back to normal…
Great Depression
Consequences
- The GDP decreased and went back to normal after the Second World War
- The businessmen weren’t allowed to satisfied their needs and their investments
- The monetary activity wasn’t working and the economic activity decreased
- Roosevelt designed some solutions for the depression that was suffering America
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Main Characteristics
Causes.
- The crash of the stock market caused by the Black Thursday, Black Monday and Black Tuesday.
- Economic bubble caused by the subconsume and overinversion.
- Lack of trust in the market which caused the inversors to stop consuming and investing. Instead they took their money in cash not in actives.
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Germany
At the end of WWI, Germany became a democratic republic known as Weimar Republic.
Government became unable to deal with the economic crisis, which became vulnerable, since it was based in foreign capital and trade.
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Germany asked the US for loans, becoming dependent.
The Weimar Republic was devastated by the Wall Street crash in 1929. The US had propped up the Weimar Republic with loans in 1924 and 1929.
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United States of America
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12,830,000 people unemployed
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