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CRISIS OF 1929 AND THE GREAT DEPRESSION, image, image, image, image, image…
CRISIS OF 1929 AND THE GREAT DEPRESSION
AN ABRUPT END TO PROSPERITY
US economy based on massive financial growth
they hoped to get rich in a short period of time by buying and reselling stocks
Rising value
increase in credit operations without sufficient repayment guarantees
New York Stock Exchange
main indicator of the world economy
overvalued
financial bubble grew
Black Thursday and Tuesday
1 more item...
companies lost their value + capital
savers
money disappear transformed into unpayable debts
banks went bankrupt
could not collect money
companies close down and fire workers
industrial production declined
end of the period of prosperity
Many countries depended on US
cancelled as a result of the crisis
great depression
intensity, duration, reach
worst crisis
Economic crises
part of the capitalist system, happened in cycles
consumption fell dramatically
less business activity
increase in unemployment
affected all social classes
MEASURES TO OVERCOME THE GREAT DEPRESSION
affected industrialised countries
Great Britain, Austria and Germany
decline of industrial production
countries and colonies that exported raw materials
industrial countries who bought their products didn't have same purchasing power
Brazil, Argentina, Chile, India, Malaysia and Australia
MEASURES
trade agreements
economic nationalism
state intervention
US 1933
President Roosevelt proposed the 'New Deal'
state intervention, control of banking...
promotion of public works
won elections four times
during his mandate
crisis of 1929
rise of totalitarianism
World War II
GREAT BRITAIN
state didn't intervene
devalued the pound by 25%
pound lost part of its value
change from traditional British free trade policy to protectionism
FREE TRADE
free movement of goods without the state intervening
PROTECTIONISM
customs tariffs on imports
to favour the country's own industry
