The Great Depression is an economic crisis in 1929 and the passing Balthelatiniat and early forties , and is considered the largest and most famous of economic crises in the twentieth century and the proverbial what might happen in the twenty-first century and how bad the crisis that may occur has begun crisis in America and historians say it started with the collapse of the stock market U.S. October 29, 1929 and named Thursday black. The devastating impact of the crisis on almost all the countries rich and poor ones , and global trade fell between half and two-thirds , as the average per capita income and tax revenues , prices and profits. More cities affected by the crisis is especially dependent on heavy industry and construction work stopped almost in most countries , was also affected farmers crop prices fall about 60 % of its value .
The areas of the Gaza -based basic industries such as agriculture , mining and logging are the most affected due to lack of demand for basic materials in addition to the lack of alternative job opportunities . It also led to the suspension of factories for the production , and resulted in becoming whole families to sleep in cardboard shacks and looking for its stores in the dirt and garbage. The Department of Health recorded in New York that more than a fifth of children suffering from malnutrition . The United States has begun an economic boom in the twenties and then a recession and then the Great Depression in 1929 , and then return in 1932 . After the collapse of the clapper Wall Street was still optimism prevailed and the man said the industry 's famous " John Rockefeller " : "During these days there are a lot of pessimists , but during my life that spanned ninety-three -year-old was the crises come and go , but must come prosperity beyond always ." The crisis began disappearing in all the countries at different times has been prepared by countries of different programs for the advancement of the crisis had caused the crisis in the political turmoil actuated to be either of the states the right or left and also pushed citizens desperate to demagoguism - It is the best known of Adolf Hitler - This was the cause of the outbreak World War II
The crisis began with the collapse of a sudden and full of the Stock Exchange and with the stock in April 1930 began to recover and return to the levels of early 1929 , but it remained far from levels in September 1929 by about 30% and with that government spending has increased during the first half of 1930 , however, consumer spending decreased by 10% this is due to heavy losses in the stock market in addition to the severe drought ravaged the agricultural lands of America at the beginning of the summer of 1930 knew Bkassah dust.
In early 1930, credit was plentiful and interest rate a little , but that people were reluctant to add another debt deficit , and in May 1930 was car sales have fallen to the levels of mid- 1928 prices began to decline , but that salaries have remained constant , but did not last long and fell in mid- 1931 , the agricultural areas were most affected by a fall in commodity prices generally , and on the other hand was a crisis in the areas of mining and logging areas because of unemployment and the lack of alternative job opportunities . The contraction of the U.S. economy is a factor in the contraction of the economies of other countries in the frantic attempts applied some countries preventive policies have made the U.S. government in 1930 to impose tariffs on more than 20,000 class importer and known as the tariff Smoot Hawley received some countries to impose tariffs of revenge , which was exacerbated by the collapse of the global trade and the end of 1930 and continued at a steady rate of collapse that hit bottom in March 1933 .
Back economic crises in the capitalist countries to be free system that refuses to interfere with the state to reduce the activity of individuals in the economic field the holders of capital are free to invest their money and how business owners are free to produce in quantity and quality . This is what we can call the loss of control and guidance. And economic freedom entails the freedom of competition between the producers of one type of goods. The introduction of the machine in the economic process that would double the production and reduces the need for manpower . Consequently, the surplus production to the markets needs of the discharge . When disrupted the relationship between supply and demand in the absence of censorship occur economic chaos are the inevitable outcome of a crisis within the capitalist state .
Among the reasons for the crisis in the United States instability of the economic situation and the policy of the intensity of production to meet the needs of global markets during the First World War due to the cessation of factories in some European countries after the transition to war production and the return of many countries to production after the end of the war and dispensing American goods . For these reasons, goods piled up in the United States and the accumulated debt and bankrupted a lot of laboratories and factories have been laying off workers and spread unemployment and weakened purchasing power and exacerbated social problems and ethical .
In addition raised the reluctance of European countries to repay the debt owed by the United States a lot of speculation when a U.S. citizen , lost U.S. investors and foreign confidence in the U.S. Treasury . This was reflected on Wall Street as the oldest shareholders in major companies to sell shares to sell heavily . This led to a drop in stock prices sharply dragging more bankruptcies and layoffs an. Did not start the recovery in the United States only in 1933 with the policy of the New Testament developed by President Franklin D. Roosevelt , which stipulates policy Testament to develop solutions to the banking crisis in 1933 and the reopening of sound banks , and the issuance of laws 1933 and 1935 , which prohibits banks from dealing in shares and bonds. As well as the establishment of institutions for the care of victims of the crisis of the unemployed , in addition to issuing laws achieve stability in the agriculture sector and the industrial version Reform Act of 1933 , and the correct use of securities through the establishment of the Commission on the stock exchange in 1934 . Necessary to begin to address the financial crisis, the availability of liquidity to move the market and to provide liquidity to the U.S. should withdraw deposits from the banking world , especially in Europe. This procedure contributed to the breakthrough economic conditions of America to some extent , but it contributed to the internationalization of the crisis moved to other capitalist countries in the world, especially Britain, France and Germany and built the American President Franklin Roosevelt new economic policy based on access in major projects in order to run the largest possible number of workers to solve the problem unemployment was for the creation of employment offices and the expansion of development projects and social. Focused campaign for the presidential election in 1932 on the causes and possible solutions to get out of the Great Depression . Herbert Hoover , the Republican U.S. president at the time, was unlucky as the Great Depression, a catastrophe occurred after he entered the White House nearly eight months , Franklin Roosevelt, the Democratic candidate for the White House attacked Republicans strongly stated that the disaster occurred because of Republican policies during the twenties. After the presidential election resulted in a landslide victory for Roosevelt Democrat to Republican Herbert Hoover , and so the United States prepared to enter into a new phase of political and economic change .
In 1933, Roosevelt declared the new president , for his economic program , known as The New Deal, what has surprised analysts and observers is the speed with which they were implemented plan the New Deal, which usually takes generations to be applied . When the received power was the banking system and credit in the case of complete paralysis , and banks were closed, and ordered Roosevelt to open banks that are not subject to bankruptcy gradually , and the Government has adopted a moderate policy toward the currency inflation , and provide relief for some debtors , while the government provided credit facilities generous to artisans and farmers , and enacted strict regulations on the sale of securities on the stock market . The first steps of economic reform headed towards the unemployed through legislation enacted Congress to ensure the delivery of assistance to unemployed youth who is aged between 18 and 25 years old , was named this project by Works Progress Administration or the WPA project aims to direct those forces the unemployed to work on projects special government infrastructure and construction of buildings and roads , has been involved about two million young in this program , which was introduced in November 1933 and was suspended in 1934 .
The United States had experienced many financial crises before 1929. At the start of the Great Depression, people remembered the panics of 1907 and 1893. On those occasions, the recession following the financial panic was sharp, but the recovery was rapid. The depression of the 1930s, however, dragged on and on. What had happened? Why did it last so long? This is the most controversial question about the depression. Part of the story, of course, is simply how far the economy had fallen. If you fall into a deep pit, it will take a long time to crawl out, even if you are climbing rapidly. The recession within the depression, moreover, delayed the final recovery by several years. Something more, however, seems to have been at work, and many economic historians have labored to figure out what it was.
Work Citied
http://en.wikipedia.org/wiki/Great_Depression.
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