Please enable JavaScript.
Coggle requires JavaScript to display documents.
02 The Crisis Of 1929 And The Great Depression - Coggle Diagram
02 The Crisis Of 1929 And The Great Depression
Measures To Overcome The Great Depression
Great depression especially affected industrialised countries
most affected in Europe were:
Great Britain, Austria, and Germany
Countries exporting raw materials also suffered consequences
Countries that bought raw materials stopped buying
Brazil, Argentina, Chile, India, Malaysia and Australia
Drastic reduction in exports
Countries searched ways to overcome the crisis
such as trade agreement between countries
In general
based on economic nationalism and state intervention
In Great Britain
Despite having over 3 million unemployed workers
State not intervene in the economy
restricted itself devaluing the pound by 25%
1 more item...
In United States (1933)
President Roosevelt proposed a shock plan
New Deal, to revive the economy
Proposed state intervention
1 more item...
An Abrupt End To Prosperity
Economy in U.S based on massive financial growth
People hoped to get rich just by buying and reselling stocks
Instead increase in credit operations
No sufficient repayment guarantees
New York stock exchange
financial bubble grew and quickly burst
Black Thursday and Tuesday
share price fell sharply
Panic across U.S
Theire priority was to get rid of shares
Which were dropping in value
Crash of the New York Stock Exchange
Companies lost theire value
Savers saw their money disappear
Most banks went bankrupt
Companies were no longer given new credit
Many companies had to close
End of the period of prosperity
Repercussions of the economic crisis had impacts around the world
Many countries depend on U.S loans
This was known as the Great Depression
Worst crisis the capitalist system had ever endured
Consumption fell dramatically
much less business activity
Increase of unemployment
This affected almost all social classes
workers did not collect any unemployement benefits