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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
Boom in the US economy
Massive financial growth
Invested
Company profits
Savings
Of many middle-class families
In unprecedented speculative operations
On the stock market
Hoped to get rich
In a short period of time
New York Stock Exchange
Was overvalued
A financial bubble grew
Quickly burst
Crashed
Black Thursday and Tuesday
Share price fell sharply
Panic spread
Investors sold
Huge amounts of shares
At a much lower price
End of the period of prosperity
Companies
Lost their value and capital
Weren't given new credit
Had to close down
Fire their workers
Savers saw
Their money disappear
Transformed into unpayable debts
Most banks
Went bankrupt
Couldn't collect money
For credit granted
Industrial production
Declined a great deal
In a short period of time
Generalisation of the crisis
The repercussions
Were quickly felt
Around the world
Of the economic crisis
The Great Depression
The worst crisis
The capitalist system
Had ever endured
Economic crises
Consumption fell dramatically
Less business activity
Increase in unemployment
Millions of people
Had no work
Thousands
Lived in poverty
MEASURES TO OVERCOME THE GREAT DEPRESSION
The Great Depression
Affected industrialised countries
Great Britain, Austria and Germany
Affected countries and colonies
That exported raw materials
Industralised countries
Couldn't bought their products
Reduction in exports
Brazil, Argentina, Chile, India, Malaysia and Australia
Measures
Based on
Economic nationalism
State intervention
In the United States
President Roosevelt proposed
A shock plan
The ‘New Deal’
To revive the economy
State intervention
Which involved
The promotion
Of public works
Subsidies for firms
The control
Of banking
More social welfare
In Great Britain
3 million unemployed workers
State didn't intervene
In the economy
Restricted itself
To devaluing the pound by 25%
Lost part of its value
Against other foreign currencies
Favoured exports
Invigorated the domestic market
A change from
Free trade policy
To protectionism
Customs tariffs on imports
To favour the country’s own industry
Free movement of goods
Without the state intervening
To regulate international trade
