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THE CRISIS OF 1929 AND THE GREAT DEPRESSION, new deal, pound, raw…
THE CRISIS OF 1929 AND THE GREAT DEPRESSION
AN ABRUPT END TO PROSPERITY
boom in the US economy
during the roaring twenties
a massive financial growth
speculative operations on the stock market
company profits
raising value
many middle class families invested on them
wanted to get rich
increase in credit operations
without repayments guaranteed
crash of the New York Stock Exchange
the financial bubble burst
Black Thursday and Tuesday
24 and 29 October 1929
share price fell
panic through the US
huge amount of shares sold
lower prices than the originals
investors
wanted to get rid of the ones loosing value
consequences
Companies
lost value and capital
were not given credits
had to close down
fire workers
industrial production declined
people
lost their money
had many debts
banks
went bankrupt
Great Depression
all around the world
the worst crisis of the capitalist system
worst phase
1930-1932
many countries of Europe
depended on the US loans
which were cancelled
economic crisis
crisis
part of the capitalist system
happens in cycles
consumption fell
less business activity
unemployment
thousands of people lived in poverty
the most affected
workers, employees and technicians
affected almost all the social classes
MEASURES TO OVERCOME THE GREAT DEPRESSION
Countries affected
the industrialised countries
Austria
Germany
In Europe
similar consequences as in the US
Great Britain
the ones exporting raw materials
the price lowered
Brazil
Argentina
Chile
India
Malaysia
Australia
Measures
trade agreements between countries
each country had their own measures
in general
economic nationalism
state intervention in the economy
United States
the new deal
proposed
in 1933
by President Roosevelt
State intervention
promotion of public works
subsidies for firms
control of banking
more social welfare
Great Britain
the state did not intervene
more than 3 million unemployed
devaluation of the pound by %25
against foreign currencies
lost value
favoured exports
invigorated the domestic market
