Economic crisis - World History since 1500, Exercises of History

Download Economic crisis - World History since 1500 and more Exercises History in PDF only on Docsity! II. ECONOMIC CRISIS The economic crisis of 1929-1933 was the greatest economic crisis in the history of capitalism. 1. Causes Two factors played a major role in the impending Great Depression: the deterioration of domestic economies and the international financial crisis caused by the crash of the US stock market in 1929: + The indiscriminate and massive production of capitalism in 1924-1929 led to a surplus of goods because the purchasing power of the masses was greatly reduced due to exploitation. the evils of the bourgeoisie. This is considered a crisis of overproduction. In contrast, the 1919-1924 crisis was seen as a shortage crisis. In addition, the increased use of oil and hydroelectricity led to a decline in the coal industry even before 1929. + From 1920 to 1929, American individuals began to make large investments in the market. In 1928, they began pulling money out of Germany to invest in the booming New York Stock Exchange. However, in October 1929, the stock market crash caused American investors to withdraw more money from Germany and other Central European countries. At the time, trade was slowing, industrialists cut production, and unemployment was increasing due to the effects of international banking problems that severely affected domestic economies. 2. Highlights a. Explosive and serious for the US market: In October 1929, an economic crisis began to erupt in the United States, shortly after the stock market crash of October 1929, sending Wall Street into a state of panic and wiping out millions of investments. From 1929 to 1933, industrial production fell by nearly 47%, gross domestic product (GDP) fell by 30%, and the unemployment rate reached more than 20%. The banking system was weak, the prices of agricultural products were inherently low. The lower the low, the more collapsed, and excess industrial production once contributed to the recession. b. The influence spreads to and strongly affects other capitalist countries: This crisis also affected other capitalist countries. A number of countries in the UK and France were seriously affected. The crisis in France lasted from 1930-1936. Besides, in the UK, the production of iron and steel in 1931 also decreased by about 50%, and trade fell heavily by 60%. Not only that, Germany, Poland, Italy, Romania, Japan, ... all have economic crises.