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CRISIS OF 1929 AND THE GREAT DEPRESSION, image, image, image, image -…
CRISIS OF 1929 AND THE GREAT DEPRESSION
AN ABRUPT END TO PROSPERITY
boom of the US economy
based on massive financial growth
unprecedented speculative operations on the stock market
were invested
company profits
savings of many middle-class families
As a result of intense speculation
New York Stock Exchange
main indicator of the world economy
overvalued
24 and 19 October
Black Thursday and Tuesday
share price fell sharply
Investors sold huge amount
lower price than the original
crash of the New York Stock Exchange
End of the period of prosperity
Banks
corrupted
Many companies had to close down
Companies
lost their
value
capital
Industrial production declined
Repercussion of the economic crisis
quickly felt around the world
Many countries depended on
US loans
which were cancelled
Great Depression
generalisation of the crisis
worst crisis the capitalist system had
Economic crises are a phenomenon that
part of the capitalist system
happen in cycles
Main effect of the crisis
increase in unemployment
millions of people had no work
thousands lived in property
affected
social classes
MEASURES TO OVERCOME THE GREAT DEPRESSION
especially affected
industrialised countries
In Europe
Austria
Germany
Great Britain
suffered consequences similar
to US
Countries and Colonies that exported raw materials
also suffered Great Depression
some joint measures attempted to overcome the crisis
trade agreement
each country carried out the solutions
most appropriate for each country
economic nationalism
state intervention in the economy
both strategies were embodied by
United States
revive economy
shock plan
state intervention
promotion of public work
subsidies for firms
control on banking
more social welfare
Great Britain
not intervene in the economy
restricted itself to devaluing the pound by 25%
favoures exports
pound lost part of its value
The devaluation of the pound
from traditional British free trade policy
to protectionism
Free trade is committed
free movement of goods without
the state intervening to regulate trade
Protectionism
establishing customs tariffs on imports
to favour the country's own industry
FRANKLIN D. ROOSEVELT
led the country from 1932 to 1944
many historical events took place
rise of totalitarism
crisis 1929
WW2
won the elections four times
