Great Depression 1929
The great depression is called the recession of the world economy that began in 1929, which in the United States continued in the most severe phase until 1933 and, in general, the world came out only in 1939, that is, after the Second World War. Developed countries, such as the United States, Great Britain, Canada, France and Germany, have been the most affected by the crisis, but they have also affected other States. Industrial towns were the worst hit, and in many places, virtually no construction has stopped.
Here we go. Great depression in the United States strongest Exchange collapsethat happened in 1929. On 24 October 1929, the price of the shares was dropped by an occupancy day in the black Thursday exchange history. However, a few days later, the fall took even catastrophic proportions, so on 28 and 29 October it was called black Monday and black Tuesday, respectively.
Economists have not yet come to the general view that the Great Depression has begun. However, scholars have drawn up a list of selected factors which, in aggregate, have led to a long recession of the American and world economy. This is one of the first reasons for the lack of money. At that time, money could not be printed arbitrarily, as was done today, as it was provided with the country ' s gold reserve. As a result of growing production, there was a lack of money, which caused deflation - a drop in prices. It should also be borne in mind that the United States economy in the first quarter of the 20th century was " pumped " by military orders, as the First World War was under way. When the war ended, military production collapsed, resulting in recessions in the military and industrial complex and related sectors of the economy. Also among the reasons why Great depression 1929-1933referred to the capitalism of the next reproduction crisis, the incorrect monetary policy of the FRF, the emergence of a stock bubble (invested in production above what was actually required), rapid population growth and increased life expectancy.