Economical

Economic crisis 1929

Economic hegemony after World War I displace from Europe to the United States especially concentrated in New York on Wall Street. For the years 1923 United States passed a golden age had become the most important country in the global financial aspect known as'' 20 happy years’’. It was a period in which United States grew sharply improving economic expansion in manufacturing, mechanical, trade, production, etc.., But  ended in 1929 with the crisis of crack or black Thursday, one of the major economic crises that have happened until today.

It originated in New York (on 24Thursday of October with the price collapse of stock values. The problem began when companies asking to increase appropriations for higher production and to purchase products consumed. Production increased sharply to become a blockbuster result there is more supply than demand, and become a stock and so prices fall and production is less benefit. There was an Impact of lower prices given the ruin of the peasantry and increased a huge unemployment in the country.

'' Black Thursday´´ was the day the New York Stock Exchange collapsed, there was panic among investors began selling their products to pay their loans. This caused some shareholders unable to repay their loans which led to a bank failure, this genre general closure of companies. The crisis spread worldwide and many companies went bankrupt owners. Also United States being the world center of economy, they were helping Europe recover after World War then Europe would have no further aid United States to repatriate their foreign investments and demanded their loan payments abroad (Europe) is so a crisis expands in Europe and the rest of the world. The crisis lasted for much of the time 1930

The 1929 crisis was the worst financial crisis in history by the number of shares sold, the total number of losses and the number of firms, owners, investors ruined. Also stop the economic growth of United States and the world after being in accordance stability in the economy. It was a blow for United States had never experienced such poverty reached a point of thousands of people left the farms and competing for scarce jobs in the city and just as Europe moved from a time of reconstruction after the first World War and the crisis had increased social tension and contributed to the strengthening of fascism in Italy took especially consequential to the second world war.

Great Depression 1929

When the U.S. got a great power in World War I, became the most powerful country and being the global economic center, but soon there was a production and exports fell, like many banks failed and many unemployed Americans. After the economic crisis of the 1929 crash and the great production bankruptcy produce the Great Depression. 1929 had the stock panic in Wall Street in New York and many actions had to sell that same year. The closure of large companies gave a lot of unemployed and impoverished United States and the world. They broke more than nine thousand bank and had an unemployment rate of almost a quarter of Americans. Governments were forced to have to change or intervene in the economy to ease the state out of poverty and they were going through.

The Great Depression affected the entire United States, the situation improved with the entry into government of the new president franklin d. Roosevelt in March 1933. Agriculture had fallen and farmers were particularly damaged and also a drought that had been coming. Franklin d. Roosevelt promised to all citizens a New Deal was a new deal. It was to strengthen social protection by the state and boost the industry and promote job creation especially in agriculture-based insurance and suppression of neighborhoods of the city. And he made a project of restructuring the banking system. New Deal was a radical change of economic policy, Roosevelt forced banks and hill severe decree laws that some of them continue today in U.S. economic policy. They made a new policy eliminating the gold in the currency and most countries did the same. Many citizens were supported by the state and had new jobs. In 1934 created a system of monitoring the stock status and social monitoring system with the labor protection law. Roosevelt created the Civilian Conservation Corps and the successful project of the Tennessee Valley Authority that provided work for over thousands of employees.

In Latin America after the Wall Street stock market in New York fell, countries like Mexico and Peru tried to break free from the dominion of the economic crisis in the United States. In the case of Brazil passed a low precious crisis of its main resources. In Austria the first bank failure of Vienna began to affect Europe and Great Britain renounced the gold standard and devalued the pound.

The Great Depression caused widespread unemployment and poverty on a large scale until now not been seen. The period after the crisis was different in each country for example in the case of Germany the bank and cancel the jobless lead in increasing support of Adolf Hitler

 Bibliography

Benton, w. (1970). encyclopedia barsa 2 and 5
http://history1900s.about.com/od/1930s/p/greatdepression.

by: Flavia Rivarola