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THE CRISIS OF 1929 AND THE GREAT DEPRESSION - Coggle Diagram
THE CRISIS OF 1929 AND THE GREAT DEPRESSION
AN ABRUPT END TO PROSPERITY
"Roaring Twenties"
Massive financial growth
unprecedented speculative operations in the stock market thanks to
the savings of many middle-class families
the profits of companies
Stock market
get rich in a short period of time by buying and reselling stocks
increase in credit operations
without sufficient repayment guarantees
intense speculation
New York Stock Exchange was overvalued
main indicator of the world economy
financial "bubble" grew and burst
On 24 and 29 October 1929
the share price fell sharply
panic across the US
investors sold huge amounts of share at much lower prices
get rid of shares that were dropping in value
crash of the New York Stock Exchange
5 more items...
end of the period of prosperity
repercussion of the economic crisis felt around the world
loans given by the US to Europe for WWI were cancelled
Great Depression
worst crisis the capitalist system had ever endured
intensity, duration and reach
Worst phase
1930-1932
it lasted the entire decade of the 1930s
Economic crisis
phenomenon of the capitalist system
happen in cycles
in 1929
consumption fell dramatically
less business activity
an increase in unemployment
affected almost all social classes
no unemployment benefits.
MEASURES TO OVERCOME THE GREAT DEPRESSION
affected industrialised countries
industrialised countries
US
in Europe
Great Britain
Austria
Germany
consequences
a loss of value of shares on the stock markets
decline of industrial production
bankruptcy of firms
fall of prices and salaries
alarming increase in unemployment
colonies suffered
those who exported raw materials
industrialised countries did not buy as much
Brazil, Argentina, Chile, India, Malaysia and Australia
drastic reduction in their exports
measures/solutions
based on economic nationalism and state intervention
in the United States
"New Deal" proposed by President Roosevelt in 1933
state intervention
promotion of public works
subsidies for firms
the control of banking
more social welfare
In Great Britain
more than 3 million unemployed workers
the state did not intervene in the economy
restricted itself to devaluing the pound by 25%
this favoured exports
it gave strength to the domestic market
change from the traditional British free trade policy to protectionism
free trade
no intervention of the state in the movement of goods
protectionism
customs tariffs on imports to favour the country’s own industry
FRANKLIN D. ROOSEVELT (1882–1945)
only president of the USA that won the elections four times
from 1932 to 1944
