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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
there was an increase in credit operations without sufficient repayment guarantees
much of the boom in the US economy was based on massive financial growth
The New York Stock Exchange
was overvalued
A financial bubble grew and quickly burst
This led to the crash of the New York Stock Exchange
Investors sold huge amounts of shares at a much lower price than the original
Their priority was to get rid of shares which were dropping in value
Companies lost their value and their capital
Savers saw their money disappear, transformed into unpayable debts
Most banks went bankrupt as they could not collect money for credit granted
Companies were no longer given new credit
many companies had to close down and fire their workers
The repercussions of the economic crisis were quickly felt around the world
This generalisation of the crisis is known as the Great Depression
this was the worst crisis the capitalist system had ever endured
Economic crises are a phenomenon that are part of the capitalist system and happen in cycles
millions of people had no work and thousands lived in poverty
This affected almost all social classes
workers, employees and technicians were the most affected
Many firms were ruined
Dorothea lange
American documentary photographer and photojournalist
whose photographs during the great depression greatly influenced
humanised the consequences of this period
The development of documentary photography
She toured part of the United States recording the effects of the Great Depression
Her snapshots became a testament to the severity of the crisis
MEASURES TO OVERCOME THE GREAT DEPRESSION
The Great Depression especially affected industrialised countries
In Europe, the most affected countries were
Great Britain
Austria
Germany
Countries and colonies that exported raw materials also suffered the effects
Brazil
Argentina
Chile
India
Malaysia
Australia
agreements between countries
were attempted to overcome the crisis
each country carried out the solutions it considered most appropriate
they were based on
state intervention
economic nationalism
Both strategies were embodied by the main economic powers of the time
In the United States,
President Roosevelt proposed a shock plan
to revive the economy
He proposed state intervention
which involved the promotion of public works
In Great Britain
the state did not intervene in the economy
estricted itself to devaluing the pound by 25%
the pound lost part of its value against other foreign currencies
