The black Thursday: reasons and consequences into the USA

Résumé du document

It is during the First World War that America has really developed its industry to conquer the first place in the world, and it seems to have retained the position even till today. During times of war, European economies were destroyed and Americans developed new technologies and industries as part of the modern development era. Americans also based their life on large scale consumption and developed a new way of life with transport and communication. Several new media and technological innovation were developed that created new standards of living. One such case in point is the philosophy of Taylorism that is implemented into the plants of Ford that added new procedures like organization of work in 1908 and subsequently launched the famous Ford T. America invented the mass production and the future looked bright. As a result, America dominated economically, in the military and also politically in the world and innovation and reduction of unemployment. This spurt in growth made analysts and investors self confident. After this boom and phase of increasing growth, no one expected a crisis on the Wall Street, which led them to prepare for the Second World War. In this study, we are going to show reasons and consequences of the crisis that affected the entire world impacting political choices into those countries.

Extraits

[...] Speculation made an economic bubble. The market began crazy, going up and mostly down very fast because there were no buyers The trading floor of New York just after the crash II Consequences The 29 stock market and the great depression following was the biggest financial crisis of the 20th century. It made panic all over the country and then the world. It was also a shock for mind, because people were expecting market reaching the sky, it didn't happen. [...]

[...] Hollywood was creating his first star and women obtain in 1920 the right to vote. The American way of life was born. America invented the mass production The America is liberal on an economical view and conservatism about social questions. Hardling and Hoover are presidents; they develop the concept of America first and make it an isolationist country that refused to enter into the SDN an organization for European business in Europe. It is a puritan and racist country with more than 5 members of the Ku Klux Klan. [...]

[...] To stop the mechanism, the central bank rises up the interest into the slump. About 4000 banks and lender failed. It just created inflation and inflation. As they were no trust and available cash on the market; you had to pay more and more interest to make a loan. Inflation followed. The psychological effects of the crash reverberated across the nation as business became aware of the difficulties in securing capital markets investments for new projects and expansions. People were looking for safety and were time after time losing their jobs. [...]

[...] A huge number of hoovercity developed in the USA. In response, President Hoover and Congress approved the Federal Home Loan Bank Act, and launch the construction of thousands of new homes. This act stimulate the economy and the government developed the Emergency Relief and Construction Act (ERA) which is a program funds for public works programs and following the creation of the Reconstruction Finance Corporation (RFC) in 1932. The government wanted to secure loan for a development plan. They wanted a Keynesian policy with a wealth ware state. [...]

[...] This crash followed a speculative time in the late 1920s, which had led hundreds of thousands of Americans to invest massively in the stock market, a significant number even borrowing money to buy more stocks. The regulation of Wall Street is responsible of the situation. They allow people to buy share holders with having only 10% of the amount as protection. This firewall wasn't enough and emphasis speculation on market. As the growth was higher as loan interest, companies, people and institution were massively taking out a loan expecting creating value playing on the market. [...]