Few events were as decisive as the World War I. Although there were many countries affected, that was not the case in USAmainly due to his late entry into the war. Unlike other large industrial nations, it emerged from the war almost intact.
This began the famous great decade of the 20’sduring which there was not only a festive and musical atmosphere, but also prosperity and optimism. Salaries had grown and employment had increased, and it was during those years that the American population began to venture into investment models.
Among these, some similes stood out “freedom bonds”which had been issued to the public during the last two years of World War I, presented by Charles Mitchell, the president of National City Bank and a type of hero figure of that time. By the mid-1920s, three million Americans owned stocks.
What was the Crack of 1929 like?
Being a time of sustainability, Americans They didn’t realize that something bad would happen.. And when no one believed in ups and downs, shortly before reaching October 1929, prices had gone down a little. Nobody suspected anything. In fact, they believed this indicated that there would be new growth.
He arrived Thursday October 24and The Wall Street Stock Market had the worst fall in its history. A crowd took to the streets of southern Manhattan to see what was happening. There was a tense atmosphere. But it didn’t end there, since On the following Monday the 28th and Tuesday the 29th, the stock market fell again, 12.8% and 12% respectively.
A world of more socially harmonious growth ended up emerging from the Great Depression. But this shift led to a sharp reduction in the perception of risk, which deprived capitalism of its main driving force.
A world of more socially harmonious growth ended up emerging from the Great Depression. But this shift led to a sharp reduction in the perception of risk, which deprived capitalism of its main driving force.
And from then on everything went downhill: credibility was lost in the credits, The production of the most important industrial sectors of the country fell and unemployment suffered a very strong blow. Six months after the Crash, the total number of unemployed had more than doubled to 3.25 million.
Although it was not the only cause, The Crash of ’29 gave rise to the Great Depressiona great financial and social crisis that many of the industrial countries of the time went through. The president of that time, Herbert Hoover, had implemented a model laissez-fairewith the objective that companies and banks balance the economy on their own. This meant failure and the end of his mandate, which ended with the 1932 presidential election that won Franklin D. Roosevelt.
It was there that Roosevelt began his plan called New Dealwhich consisted of a treaty with 15 laws to combat the effects of the Crack, generate employment, and restore the economy and industries.
The endless lines of unemployed, a typical postcard of the Great Depression of the 1930s. Like that, this crisis will also leave its marks: economists lead the list of losers.
The endless lines of unemployed, a typical postcard of the Great Depression of the 1930s. Like that, this crisis will also leave its marks: economists lead the list of losers.
Among these stood out the Emergency Banking Lawwhich would stabilize the banking system, the Federal Emergency Relief Administrationwhich offered support to the poorest sectors, the Civilian Conservation Corps (CCC)which placed the unemployed in camps for six months with a salary and the Public Works Administrationcreated to improve the country’s infrastructure that allowed new jobs.
At the end of the plan, in 1942, had employed 2.5 million men. However, this was not enough to overcome the Great Depression, which ended for external reasons. The American economy recovered as the country entered World War II, primarily due to supply work to other countries.
How the fall of the Wall Street Stock Market impacted Argentina
The impact of the Crash of ’29 in Argentina was mainly due to a significant decrease in imports and exports. And despite our economy being affected, the country continued paying debts abroad, so there was less capital, salaries fell and gold reserves fell.
It was there that England was granted a monopoly on transportation in the Federal Capitalthrough the Transportation Corporation of the City of Buenos Aires, a measure criticized by society.
The fall in exports and therefore the decrease in the inflow of foreign currency that allowed the import of European merchandise They were the cause of the creation of the Import Substitution Industrialization process, in which the textile and food industries benefited the most.
Source: Ambito
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