Wednesday, June 14, 2017

43. Great Depression of 1929

       


In the end of World War I, European countries found themselves devastated, with the weak economy and strong consumer downturn that shook the world economy. The United States in turn profited from the export of food and industrial products to the allied countries in the postwar period. As a result, between 1918 and 1928 the U.S. production increased economic prosperity and spawned the American way of life. However, the European economy has recovered and subsequently began to import fewer USA. With lower consumption in Europe, the U.S. industries no longer had anyone to sell. There were more goods than consumers and consequently prices fell, production fell and unemployment rose logo. Falling profits, the overall decline in industrial production and stoppage of trade resulted in decline in shares of the stock exchange and later in the stock market crash in 1929 and that persisted throughout the 1930s, ending only with the World War II.
The Great Depression is considered the worst and longest period of economic recession in the twentieth century. This period of economic depression caused high unemployment rates, a large drop in gross domestic product of many countries as well as drastic declines in industrial production, stock price, and in virtually every gauge of economic activity in many countries worldwide.
The day October 24, 1929 is popularly considered the beginning of the Great Depression, when values of stocks on the New York Stock Exchange fell sharply. Thus, thousands of stockholders lost large sums of money. This breakdown in the values NYSE dramatically worsened the effects of the existing recession, causing great deflation and declining rates of product sales, which in turn forced the closure of many businesses and industries, thereby drastically raising rates unemployment. The effects of the Great Depression were felt worldwide. The negative effects of the Great Depression reached its apex in the United States in 1933. This year, U.S. President Franklin Delano Roosevelt approved a series of measures known as the New Deal.
The New Deal, along with social assistance programs conducted by all states, helped to minimize the effects of the Depression in 1933. Most countries affected by the Great Depression began to recover economically from then. In some countries, the Great Depression was one of the primary factors that helped the rise of regimes like the Nazis in Germany.
The 1929 crisis also affected Brazil. The United States was the largest buyer of Brazilian coffee. With the crisis, the import of this product has greatly diminished and prices of Brazilian coffee fell. In order to avoid an excessive devaluation of the Brazilian government bought and burned tons of coffee. Thus, declined the offer, and managed to keep the price of the main product of the Brazilian season. On the other hand, this fact has brought something positive to the Brazilian economy. With the coffee crisis, many farmers began to invest in the industrial sector, developing the Brazilian industry.



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Trippin - Migos

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Plan B - Migos

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