The US Economy from WWI to the Great Depression
The US Economy: From WWI to the Great Depression
The First World War
to the U.S. became the greatest industrial power, had to serve, continuing demands of France and GBY material later, when he participated in the war, their own needs bélicas.Finalizada the contest The Americans were jubilant: they had won the war, the Europeans were owed millions of dollars and their economy accumulated half the gold reserves mundial.Terminada war, the dollar single currency as payment. + THE EXPANSION OF AÑOS20 : From 1922 to 1925, all U.S. industries increased their producción.La Steel rose by 35% and the automobile industry by 31%. The basis of American industrial might was based on the construction, automotive and electricidad.La application of Taylorism and the Progressive susticucion by the machine operator facilitated nacimineto concentration of industrial and large industries, including Chrysler and Ford.Sin however, was based on two false pillars: the maldistribution of wealth and excessive foreign debt. Agriculture is notbenefited from the economic boom and the peasants lived in a continual crisis, due to stocks and the high cost of agricultural production that outweigh the benefits because of low prices agricolas.La high foreign debt was higher by tariffs, the Europeans could prevent export and pay the debt they have with the financial and industrial development norteamericanos.La Republican administration, a protectionist policy and control of emigration, which harms the development of the smuggling and favored economia.La emergence of mafia.A from 1926, economic activity went into recession: there was a saturation of the market, demand for products produced, production and investment began to fall, and farmers were really struggling to pay debts banks, due to lower prices agricolas.Sin goods, however, indicated Bag the contrary, the benefits did not stop subir.Las Stock Indexes shares could be bought on credit, and the stock system was a of the causes of the collapse of the stock exchange due to the effect domain: large speculators borrowed from their brokers, these bankers, and banks at Bank paralyzation Federal.Una demand in October 1929 caused panic stock and the largest known financial catastrophe.
FINANCIAL 3.CRISIS the crash of 29: The American economic model was based on private initiative, in a philosophy of encouragement to consumption and speculation failure financiera.Cuando consumption and investor confidence, the New York Stock Exchange collapsed arratrando with her to the industries that were dependent on the creditos.El October 24, 1929, over 13 million shares went on sale without there being little demand, which caused the distrust of investors and bankruptcy (crack) . It is estimated that the stock market losses were higher in this than all the money spent by the U.S. 1guerra mundial.Las the causes of this crisis were mediated by the protectionist measures of the ruling Republican administration: + In 1922 came into force customs tariff, which rose by tariffs, is the reduction of trade with the United States from many countries needed to export to repay loans from American banks. + Law Immigration Restriction Act of 1924 restricted the entry of immigrants . This law was a political concession to the extreme movementmista racist Ku Klux Klan, opposed the entry of aliens. + overproduction, the gap between production and consumption, resulted in the reduction of the labor obra.CONSECUENCIAS: + The bank failure, the first result of crack. Many banks failed to collect the receivables to customers and others, fearing they withdrew their deposits, which resulted in less than three years, to fail over 5000bancos and 32000 empresas.Los U.S. banks that offered the only long-term loans to finance the reconstruction europea.En 1928, the figure provided by U.S. banks in Europe was of 8500 million dolares.El fear of a new bankruptcy reduced investment in Europe. + industries, not finding financial support, closed their factories or reduced production, raising the rate of unemployed to over 15 million people. + the protectionist policy of the Hoover administration, between 1929 and 1933, exacerbated crisis.Los prevented principles of economic liberalism to solve the personal drama of the million unemployed, who came to form long lines to get a pcomida.A lato of short-term, the misery of these millions of people, prevented the economic collapse brought reactivation economica.El moral discouragement of the American people, who saw their world collapsed and consumer welfare, from wealth to absolute poverty, and began to question the ultra-liberal politics of Administracion.Se produced a large population decline as a result of restrictions on emigration, falling birth rate and increased mortality due to starvation and disease.