Great Depression By Alexzandria Rodriguez

The historical contexts of World War I is Archduke Franz Ferdinand of Austria was assassinated by a Serbian nationalist in Sarajevo, Bosnia. An escalation of threats and mobilization orders followed the incident, leading by mid-August to the outbreak of World War I, which pitted Germany, Austria-Hungary and the Ottoman Empire against Great Britain, France, Russia, Italy and Japan. The Allies were joined after 1917 by the United States. The four years of the Great War as it was then known saw unprecedented levels of carnage and destruction, thanks to grueling trench warfare and the introduction of modern weaponry such as machine guns, tanks and chemical weapons. By the time World War I ended in the defeat of the Central Powers, more than 9 million soldiers had been killed and 21 million more wounded.
After World War II, Germany war reparations both West Germany and East Germany were obliged to pay war reparations to the Allied governments, according to the Potsdam Conference. Other Axis nations were obliged to pay war reparations according to the Paris Peace Treaties of 1947.
To present of the unemployment and inflation compelling evidence of the inverse relationship between unemployment and wage inflation. A second factor that affects wage rate changes is the rate of change of unemployment.
Overproduction is the accumulation of unsalable inventories in the hands of businesses. Overproduction is a relative measure, referring to the excess of production over consumption. The tendency for an overproduction of commodities to lead to economic collapse is specific to the capitalist economy.
The Stock Market Crash was analysts warn of an end to the bull market, in which prices were constantly rising at the time. Investors were beginning to sell stock prices fell, companies reduced and the production. The fortunes lost in a day, the investors lost 4 billion dollars on the 28th and 16 billions dollars on the 29.
Banks were collapsing, families lost their savings in the crash, banks had a little bit of cash left reserve. Banks lost their money loan to buy on the margin. People defaulted on their mortgages because of their unemployment. By 1932, 1 and 4 of the banks had been closed like 6,000 banks.
In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.The term was first coined in the United States to describe the economic collapse that, by 1931, had shattered the US economy and Americans’ faith in the future.
The government was unable to deal with the economic crisis left by the war. The economic situation in Germany briefly improved between 1924-1929. However, Germany in the 1920's remained politically and economically unstable. The Wiemar democracy could not withstand the disastrous Great Depression of 1929.
Europe and the rest of the world were also badly hit, and while they first called the crisis a slump, in time the label Great Depression’was adopted on both sides of the Atlantic to describe this unprecedented global economic crisis. Although there were national variations, no part of Europe was left untouched by the Great Depression. In the worst affected countries Poland, Germany and Austria one in five of the population was unemployed, and industrial output fell by over 40 per cent. Levels of trade between countries also collapsed. By 1932 the value of European trade had fallen to one-third of its value in 1929, while many of Europe’s most respected banking houses and currencies teetered on the brink of collapse. By the end of the decade some semblance of recovery had been achieved.
Republican who had formerly served as U.S. secretary of commerce, believed that government should not directly intervene in the economy, and that it did not have the responsibility to create jobs or provide economic relief for its citizens. In 1932, however, with the country mired in the depths of the Great Depression and some 13-15 million people unemployed, Democrat Roosevelt won an overwhelming victory in the presidential election. Every U.S. state had ordered all remaining banks to close at the end of the fourth wave of banking panics, and the U.S. Treasury didn’t have enough cash to pay all government workers. FDR projected a calm energy and optimism, famously declaring that the only thing we have to fear is fear itself. Roosevelt took immediate action to address the country’s economic woes, first announcing a four days bank holiday during which all banks would close so that Congress could pass reform legislation and reopen those banks determined to be sound. He also began addressing the public directly over the radio in a series of talks, and these so-called fireside chats went a long way towards restoring public confidence. During Roosevelt’s first 100 days in office, his administration passed legislation that aimed to stabilize industrial and agricultural production, create jobs and stimulate recovery. In addition, Roosevelt sought to reform the financial system.

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