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THE CRISIS OF 1929 AND THE GREAT DEPRESSION, image, image, image, image,…
THE CRISIS OF 1929 AND THE GREAT DEPRESSION
An Abrupt End To Prosperity
New York Stock Exchange
October 1929
Black Thursday and Tuesday
share price fell
priority: get rid of shares
dropping in value
crash
lower price
overvalued
financial bubble burst
end of prosperity
money disappeared
unpayable debts
banks went bankrupt
Companies
fired their workers
lost value and capital
Industrial production
declined a great deal
Massive financial growth
invested in unprecedented speculative operations
Company profits
savings of middle-class
stock market
rich in a short period
increase in credit operations
reselling stocks
US economy
Repercussions
Great Depression
worst: from 1930 to 1932
lasted the entire decade
around the world
capitalist system
countries depended on US
Economic crises
increase in unemployment
millions of people
thousands in poverty
didn't collect unemployment benefits
capitalist system
happen in cycles
firms were ruined
Measures To Overcome The Great Depression
Colonies and countries
reduction in their exports
Brazil, Argentina, Chile, India, Malaysia and Australia
not the same purchasing power
solutions
economic nationalism
state intervention
embodied by the main economic powers
United States
Franklin D. Roosevelt (1882–1945)
won the elections four times
proposed the ‘New Deal’
led from 1932 to 1944
‘New Deal’
public works
control of banking
subsidies for firms
social welfare
Great Britain
devaluated the pound by 25%
protectionism
establishing tariffs on imports
free trade policy
to protectionism
3 million unemployed workers
favoured export
invigorated the domestic market
John Maynard Keynes (1883 - 1946)
inspired the policies of the ‘New Deal’
Great Britain, Austria and Germany
most affected
consequences
Great Britain, Austria and Germany
fall of prices and salaries
bankruptcy of firms
decline of industrial production
loss of value of shares
increase in unemployment
