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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
As a result of intense speculation
the main indicator of the world economy, was overvalued
A financial bubble grew and quickly burst
On 24 and 29 October 1929, Black Thursday and Tuesday
panic spread across the United States
old huge amounts of shares at a much lower price
This led to the crash of the New York Stock Exchange
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
many companies had to close down and fire their workers
declined a great deal in a short period of time
This was the end of the period of prosperity and of the short-lived Roaring Twenties
During the euphoria of the Roaring Twenties
economy was based on massive financial growth
many middle-class families were invested in unprecedented speculative
hoped to get rich in a short period of time
buying and reselling stocks that were continually rising in value
here was an increase in credit operations without sufficient repayment guarantees.
Repercussions of the economic crisis were quickly felt around the world
Many countries depended on US loans
This generalisation of the crisis is known as the Great Depression
Because of its intensity, duration and reach, this was the worst crisis the capitalist system
the serious economic and political difficulties lasted the entire decade
Measures to overcome the great depression
In the United States
in 1933, President Roosevelt proposed a shock plan
known as the ‘New Deal’, to revive the economy.
He proposed state intervention
which involved
the promotion of public works
subsidies for firms
more social welfare
the control of banking
