1929: Wall Street cash – The Great Depression

In October, 1929; one of the worst economic crisis happened. The New York stock market collapsed. It’s important to know about this economic crisis that overwhelmed the world.
In the years before the crash, it’s known that USA’s economy was growing very fast. It was considered the most important and efficient manufacturing country in the world. Germany, France, Italy, Japan, Soviet Union and Great Britain produce less things that the ones that USA could produce by itself.
In 1929, the incomes of USA started declining. The most successful factories were the most affected. Also, the prices for the exportation of some products started waning and people start suffering from the economic crisis. Most of the world’s economy depended from the USA’s economy, so that’s why this crash is very catastrophic and important.
The principal consequences that the depression bring:
- European businesses went bankrupt
- Africa’s raw materials sale declined
- Declines in price and exportation of Latin American products.
- Declines the price of wool in Australia and New Zealand, and the price of Canadian grain falls.
- The Japanese silk trade also declines.
This depression affected principally Germany. In that time, Germany was in a little political crisis with Weimar, and with the crash, everything got worst. Also, this depression helped Adolf Hitler develop his political party, the Nazi Party. Because of the crisis, the people were unfocused on what they need to do, while Hitler was enlarging his Party gaining seats in the Parliament. Also, people weren’t happy with democracy so they start supporting Communism.
Great Britain suffered drastically because it is a country that always had a good economy, and with the great depression the levels of productivity were decreasing a lot. For example, the ship building buckled. Also, in comparison, with the crash Britain now was producing only 7% of what they used to produce in 1914.
One country that didn’t suffer a lot with the Great Depression was France. France was just organizing their economy and they didn’t depend of USA’s economy, because they were first stabling and investing money to develop their country well and then they would focus on a better economical progress. Also, throughout the years, this crash affected France’s economy someway because the trade levels were decreasing and not so much countries were buying their products.
Is important to know the principal crisis that the world suffered because this would help you understand all the history. It also makes you think that a considerable crisis related to money also brings very bad political consequences for the future. Everything’s connected, and is important to make people know why things happened like the way they happened.