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CLIL
What did the New Deal programme entail?
The programme can be resumed in the three R's
Recovery economics to a normal level
Reform the financial system
Relief for poor and unemployment
It is created by Roosevelt with his braintrust in 1933
the aim is to change the society and to find a useful solution for American economy
the government finances a huge electrical system in the south (Tennessee)
to not repeat the same mistake of the 1929, he cares about safety of money and banks
in fact, critics claim it is just a waste of money and useful resources
indeed, it just prolongs great depression
it is divided into 2 parts
economy itself (1933-34)
financial system
government work programs (1935-38)
against unemployment
What happened in America after the WW1
Mass producing society is a consumer society
mass production involves producing in large quantities to reduce costs and prices
Increase the purchasing power of costumers
Henry Ford 1st mass producer
MODEL T
1st factory to use Adam Smith's principles
assembly line
increase of productivity
wide variety of products
leads to
labour division
huge quantities and low prices
Why did American stock market crash in October 1929?
During the
roaring twenties
there is an overproduction
everyone has money and wants to spend it in shares of companies
an important part of industrial profits are invested in the stock market
traders buy shares to push their prices up and then sell them with good profits
the stock market continously climbs
investors, people who buy, gamble their money on the stock market
shares are worth more than the real value of the company
it creates a financial speculation and speculative bubbles
1 more item...
How did the Wall street crash affect the whole American economy, and then the entire world economy
American Industries shut and unemployment rises
the important flow of capital from America to Europe stops
there is the revocation of Dawes plan
Discontent spreads in germany and this is one of the reasons why Hitler becomes so powerful
Germany is not the only european state affected by the USA recession
Germany can't pay its war debts to other european states as France, Great Britain and Italy
becomes a global recession called GREAT DEPRESSION, because affected all the western world
in five years, the United States loses half of its wealth