The black Thursday - economics and political consequences

Résumé du document

They built the American way of life based on large consumption and developed a new way of life with vehicles, Medias and home equipment that created high standards of living. Taylorism is implemented in plants and Ford added new procedures like organization of work in 1908 and launched the famous Ford T. America invented mass production, and the future was good. They dominated economically, militarily and politically the world, by their innovation, reduction of unemployment and increscent of power of purchase which made analyst and investors too self confident. No one is in those times expected that one Thursday in Wall Street would lead to a worldwide crisis which is guilty of preparing the field for the Second World War. In this study, we are going to show the reasons, consequences and the economic and political aspects of the crisis that affected the entire world impacting the political choices of those countries.

Extraits

[...] The plan Young enter in action, and decrease the amount that Germany should pay for the war. Paradoxically, it makes the situation more risky for investors to lend money to Germany. Then all companies tried to get off money invest into the country in order to save their interests. The dept was high and the liquidity of German banks not enough high to face it. Only international lend could have save the situation, but some countries refused. The repercussion went out of Europe, and with the collapse of the trust, no money was available anymore on market to borrow. [...]

[...] The black Thursday - economics and political consequences Introduction It is during the First World War that America has really developed his industry to conquer the first place in the world, place that he never lost until today. During times where the war was destroying European economies, Americans developed new technologies and industrial the Est-part of the country. They build the American way of life based on large consumption and developed new way of life with vehicles, Medias and home equipment that created up standards of living. [...]

[...] It worked when the economy is closed and the interests for borrowing money are low, but they were very high, and the cost to g through the crisis was high. The New Deal program was a program to support demand and create jobs. III Political Consequences The 29 crisis was with the two world wars, one of the major events in the first half century. It impact not only economies, but also deeply people. It was a worldwide economic crisis and only URSS with his communism economy wasn't strongly impact. The URSS was a closed economy, and they were producing all their needs without requiring international trades. [...]

[...] The USA became the creditor of Europe, and developed his own financial institution. This is at that time that Wall Street gains his dominance that he still has today. In the the North America is entering into a new age. This is the age of the chemical, hydrocarbon and electricity. Individual home are connecting to the electric network and Americans are equipping massively on cars and home equipment. This is due to technologies development and increscent of the purchase power. [...]

[...] They are purchasing black and immigration is maintained to small level. the reason of the crisis The idea of Keynes about this situation was simple: to keep people fully employed, governments have to run deficits when the economy is slowing, as the private sector would not invest enough to keep production at the normal level and bring the economy out of recession. Keynesian economists called the governments during times of economic crisis to pick up the slack by increasing government spending and/or cutting taxes. [...]