1929 World Economic Depression, which began in 1929 ( the effects but feel literally at the end of 1930 ) and throughout the 1930s, is the name given to the ongoing economic crisis . Depression , despite receiving centers in North America and Europe , in the rest of the world ( especially in industrialized countries ) have devastating effects .
The Great Depression had hit the most industrialized cities in these cities has created an army of unemployed and homeless . Depression affected many countries construction activity has stopped ; agricultural product prices 40% to 60 decline , farmers and rural population had an adverse effect . [1] Demand unexpected levels due to lower mining area of the Great Depression of the most affected sectors that has been one of . The Great Depression ended at different times in different countries .
1929 Depression is basically dedicated to the stock market crash in America although in those years on earth economic conditions , considering the magnitude and impact of the crisis of the Great Depression of the world deserve to take the name is clearly seen . Depression, 50 million people remain unemployed in the world , the earth and 42% of the total production of world trade has also led to a decrease of 65% . Until 1929, when compared to other crises in the world consisting of world trade fell by 7% given that most of the crisis of 1929 is to what extent predictable .
Such a major crisis affecting the world of I. In order to understand the causes and consequences Formed after World War II economic and social conditions in the world you need to consider .
I. World War II directly or indirectly affect the entire world , although the post-war world consisting of the most important figures in the table have their effect on the world economy because of changes to America, England and Germany was .
War is considered the hegemonic power in the world to the UK , has become a bleeding country . Re-established after the war debt from the U.S. winning the gold standard value of the pound , British exports was led to reduction . Export less to more gold outflow caused borrowing it again .
In that year, while Germany 's post-war America was faced with the problem of the compensation that you want back . Economy to a standstill from Germany, tried to print money as compensation solution to the problem . This money is not accepted by the United States as caused hyperinflation in Germany . Then, in 1924, America's proposed compensation issue to be solved by the Dawes Plan was studied. This plan will give credit for the reconstruction of America Germany ; would pay compensation after the end of reconstruction than in Germany .
Topics [ Hide ]
1 Before the Great Depression of the American Economy
1.1 Florida Real Estate Speculation
2 Causes of the crisis
3 eruption of the crisis : 13 Friday
4 Roosevelt and his "New Deal"
5 After the Crisis : Germany
6 Impact on Turkey
7 Results
8 Notes
Before the Great Depression, the American economy [ Change | Change source ]
If America between the years of 1924-29 spent a stabilization circuit . The acquired net creditor position in the world with exports to more came . In the meantime, the car in the country , structure, such as electrically powered machines began to develop new industries . Demand for new emerging industries to be more speculative stock that was causing . So in 1928 , America has given credit to the New York Stock Exchange was forced to withdraw .
In the 1920s, the stock market was in pretty good shape other than economic indicators . Production and employment rates were high. Wages and prices did not rise too much was stable . Many people are still extremely poor , but the vast majority of the population was never as comfortable and wealthier . However, the minimum physical effort in striving Americans in those years was dominated by the desire to be rich . People judge to what extent these moods and speculation is that evidence , occurred in Florida in 1926 was a real estate boom . This event in itself all the characteristics of a classic speculative bubble housed .
Florida Real Estate Speculation [ Change | Change source ]
Event was developed as follows : Floridians winter conditions in the region to be better than the northern states , transportation problems have been solved on the basis of the value of property in Florida they thought would win . In the state of Florida was dominated by the belief that turned into a vacation paradise . In this case, the future of the earth that day they received not a few who think that a few times was measured . The majority of people these beliefs has invested in real estate . However , no account on 18 September 1928, a tropical storm killed 400 people , damaging thousands of homes and tons of seawater break down or caused to overflow into the streets . The purchased property sale value was attempted but could not even sold far below . This case was the eruption of a speculative bubble .
Causes of the Crisis [ Change | Change source ]
Great atmosphere, take a look at the pre-crisis after crisis should not dwell on the causes and development . Events affecting the world on many of these events as well as numerous research on the causes and various comments were made but they are located in the general partners of several reasons as follows:
First, the financial strength of the companies were in the United States . During the 1870s many large and small companies in America while I. Facing the challenges of World War II forced small companies to merge and have created a monopoly in the post-war . So when it comes to 1929, over 50% of the American economy , which have been holding up the number was 200 . This is not even a single holding company bankruptcy would be enough to shake the economy was showing .
A second reason was that the banks' bad structured . Principles for banks' capital , reserves and loan rates did not determine the law . For example, legislation that ensures the reliability of the financial statements of the companies did not have . So that investors receive shares did not always have enough information about the company . Again, the law separating commercial banks from investment banks were not available.
A third reason , too, the president of the Hoover administration can be said that inexperience in the field of economy . According to proponents of this idea president Hoover administration in the 1920s, according to the prevailing understanding of liberal economy had seen fit not to state intervention in the economy . However, to intervene in the crisis of 1929 has been a great deal of the social cost . When the president decided to intervene then it was too late and both interventions were not successful . For example, to balance the state budget cuts in government spending and tax increase that caused the unemployment and its reduction in the purchasing power of people and caused prices to fall defended. Another indication of the government's inexperience persisted visit was also attached to the gold standard . Government is not bound under the mintage was refusing to follow a tighter monetary policy and economic activity stopped by bulunmayın money in the market , the corporate sector has shrunk . This is more unemployment , which meant less revenue .
If the last reason to be emphasized at the beginning, as stated net creditor in the world was that of America's . Furthermore I. After World War II Germany and Britain wanted were demanding payment of compensation as gold . However, gold stocks were insufficient to earth and America was checking already existing stock . For this reason, and the credit of the said compensation to be paid in goods and services was attempted , but it hit America's own goods and services sectors . As a last resort tariff walls were made to place , but it was only out of foreign trade . After all America has given rashly could not get back the loans .
Eruption of the crisis : 13 Friday [ Change | Change source ]
New York Stock Exchange for 29 years at the beginning of 1928 until the beginning of October, in the process , is also rising and high price / earnings ratio was bringing . When it comes to barely 3 October 1929 , in accordance with the above reasons have stopped the progress of the stock market 's shares had fallen even a few large conglomerates . On 21 October this fall to dispose of them with papers of foreign investors has accelerated and the " Black Thursday " on Thursday, October 24, 1929 known as the stock market hit bottom . With the price of 1929 there was $ 4.2 billion . October 29, 1929 the day when we look at the price of a year 's profit before reset even seen. The difference between 21 to 29 October 1929 the Dow Jones industrial average fell to 230 from 328 indicates . In this process, the bank steeped in 4000 , was destroyed thousands of people 's assets .
Poor in Oklahoma during the Great Depression
These people were driven to starvation and tried to live by selling fruits and vegetables can grow . For a moment there was no money in the market that meet the needs of people go to the road in a sort of barter exchange economy came back. Tangible assets together with people also lost social status and mental health . The effects of depression II. Until World War II continued for a period of nearly 10 years .
The effects of the crisis on industrialized countries was almost the same . Wholesale price index decline in (40-60% old), raw material prices hit bottom (50% vicinity) , securities prices and the stock market 's decline ( 30-40% ) , world industrial production decreased ( 35-45% between ) , the number of unemployed in the increase ( 50 million people are unemployed ) , trade hit the bottom ( 55-80% ) and was the proliferation of bankruptcy .
Roosevelt and his "New Deal" [ Change | Change source ]
Great collapse of the American people that the bill was brought to the Hoover administration . Whether Hoover elected president in the next election was evident . Instead, he called for drastic changes in the economic system promising programs Roosevelt was elected . Roosevelt "New Deal" between the years of 1930-37 I had the opportunity to practice . Come to deal with the effects of the crisis of 1933, the year was one of the more felt . Profitability in the economy had collapsed. There was a huge lack of demand because a lot of people's purchasing power has fallen . Roosevelt, both socially and economically in such a period of a reform program which was going to deal with and great authority . For the first time in the history of the American economy was exposed to government intervention .
Roosevelt began to work with the banking sector . At that time, the industry 's gold and foreign exchange liquidity is low, the presidency was controlled by itself . The Central Bank was established for the first time . Deposits were guaranteed by the state . Up to 500 new regulations to the banking system was corrected . In the real sector , it was decided to increase profitability . Subject to the State under its control applications allow the high price of industrialists and again as production was limited for this purpose . Request to resolve the problem , the state can be considered a high level of real wages has set a minimum . Solving the problem of unemployment by reducing working hours was attempted. Has made a number of new programming in agriculture . However, some aspects of these programs were in conflict with each other . States on the one hand production quotas to keep prices high while putting what they produce on the other hand the price of a certain height had promised to take them . This is causing farmers would not want to do more production . Roosevelt's government is spending policy was a policy of balance . Küstürmemek industrialists who are opposed to government intervention in the private sector is not interested in spending in areas that require large investments were made. In these sectors with job openings in the field of reducing unemployment and increasing demand in an attempt to tackle the problem of low demand .
After the Crisis : Germany [ Change | Change source ]
Depression reached full employment , defeating the first industrial country , is Germany. Germany, without inflation with the original method of financing has managed to revive the domestic market . However, Germany's exports to the world market was not open. German factories and raw materials needed to find the version field to provide . South America, Central Europe , the Balkans and Turkey to get free currency and sell the goods they were having difficulty . Germany, direct free exchange transfers without the goods to the goods exchanged realize the possibility of providing mutual trade ( counter -trading ) models , adopting free market in the export goods at affordable rates unsalable country of the customer went into a state . The high value of exports of the agricultural economy of goods bought and sold them products of their industry . Planning and resorted to similar methods democracies such as France, the United States and moderate solutions were given up to the craze of unemployed in Germany fell upon the nazi totalitarianism . Thus the crisis , II. Would be the primary cause of World War II .
Turkey in 1929 in the face of crisis , in order to ensure development had to increase export and import , to ensure that the Republic of Turkey was followed by various policies .
In 1933, when Turkey started to be applied in non- payment clearing and settlement systems are applied. Goods clearing system in the field, is based on the principle of taking the goods . This system is connected to exports , imports , exports would have been encouraged . Indeed, the Turkish government as much as possible to deal with all countries, clearing and settlement efforts , and of the countries engaged in trade and payment agreements with Turkey , introduced on imports of priority . In addition, given the importance of the standardization of export goods , exports were encouraged in this direction by the Law No. 1705 dated 10.06.1930 to the Government to take measures giving , nuts and eggs are exported , starting from the quality control of exported goods were made . Previously carried out by the various authorities established this business in 1934 was transferred to Türkofis . Office , the control and inspection functions besides making market research and international trade and payments agreements were also given the task of preparing .
In 1929 , the world experienced the greatest economic crisis is a crisis . This crisis the world at least I. and II . World War is also clear that much influence . The Great Depression of the 1930s caused the world economic crisis when looking statement will affect the dimensions of the history of mankind there can sometimes be seen easily . Therefore, the economic crisis is not only economic but also social and even political phenomenon should be viewed as
The Great Depression had hit the most industrialized cities in these cities has created an army of unemployed and homeless . Depression affected many countries construction activity has stopped ; agricultural product prices 40% to 60 decline , farmers and rural population had an adverse effect . [1] Demand unexpected levels due to lower mining area of the Great Depression of the most affected sectors that has been one of . The Great Depression ended at different times in different countries .
1929 Depression is basically dedicated to the stock market crash in America although in those years on earth economic conditions , considering the magnitude and impact of the crisis of the Great Depression of the world deserve to take the name is clearly seen . Depression, 50 million people remain unemployed in the world , the earth and 42% of the total production of world trade has also led to a decrease of 65% . Until 1929, when compared to other crises in the world consisting of world trade fell by 7% given that most of the crisis of 1929 is to what extent predictable .
Such a major crisis affecting the world of I. In order to understand the causes and consequences Formed after World War II economic and social conditions in the world you need to consider .
I. World War II directly or indirectly affect the entire world , although the post-war world consisting of the most important figures in the table have their effect on the world economy because of changes to America, England and Germany was .
War is considered the hegemonic power in the world to the UK , has become a bleeding country . Re-established after the war debt from the U.S. winning the gold standard value of the pound , British exports was led to reduction . Export less to more gold outflow caused borrowing it again .
In that year, while Germany 's post-war America was faced with the problem of the compensation that you want back . Economy to a standstill from Germany, tried to print money as compensation solution to the problem . This money is not accepted by the United States as caused hyperinflation in Germany . Then, in 1924, America's proposed compensation issue to be solved by the Dawes Plan was studied. This plan will give credit for the reconstruction of America Germany ; would pay compensation after the end of reconstruction than in Germany .
Topics [ Hide ]
1 Before the Great Depression of the American Economy
1.1 Florida Real Estate Speculation
2 Causes of the crisis
3 eruption of the crisis : 13 Friday
4 Roosevelt and his "New Deal"
5 After the Crisis : Germany
6 Impact on Turkey
7 Results
8 Notes
Before the Great Depression, the American economy [ Change | Change source ]
If America between the years of 1924-29 spent a stabilization circuit . The acquired net creditor position in the world with exports to more came . In the meantime, the car in the country , structure, such as electrically powered machines began to develop new industries . Demand for new emerging industries to be more speculative stock that was causing . So in 1928 , America has given credit to the New York Stock Exchange was forced to withdraw .
In the 1920s, the stock market was in pretty good shape other than economic indicators . Production and employment rates were high. Wages and prices did not rise too much was stable . Many people are still extremely poor , but the vast majority of the population was never as comfortable and wealthier . However, the minimum physical effort in striving Americans in those years was dominated by the desire to be rich . People judge to what extent these moods and speculation is that evidence , occurred in Florida in 1926 was a real estate boom . This event in itself all the characteristics of a classic speculative bubble housed .
Florida Real Estate Speculation [ Change | Change source ]
Event was developed as follows : Floridians winter conditions in the region to be better than the northern states , transportation problems have been solved on the basis of the value of property in Florida they thought would win . In the state of Florida was dominated by the belief that turned into a vacation paradise . In this case, the future of the earth that day they received not a few who think that a few times was measured . The majority of people these beliefs has invested in real estate . However , no account on 18 September 1928, a tropical storm killed 400 people , damaging thousands of homes and tons of seawater break down or caused to overflow into the streets . The purchased property sale value was attempted but could not even sold far below . This case was the eruption of a speculative bubble .
Causes of the Crisis [ Change | Change source ]
Great atmosphere, take a look at the pre-crisis after crisis should not dwell on the causes and development . Events affecting the world on many of these events as well as numerous research on the causes and various comments were made but they are located in the general partners of several reasons as follows:
First, the financial strength of the companies were in the United States . During the 1870s many large and small companies in America while I. Facing the challenges of World War II forced small companies to merge and have created a monopoly in the post-war . So when it comes to 1929, over 50% of the American economy , which have been holding up the number was 200 . This is not even a single holding company bankruptcy would be enough to shake the economy was showing .
A second reason was that the banks' bad structured . Principles for banks' capital , reserves and loan rates did not determine the law . For example, legislation that ensures the reliability of the financial statements of the companies did not have . So that investors receive shares did not always have enough information about the company . Again, the law separating commercial banks from investment banks were not available.
A third reason , too, the president of the Hoover administration can be said that inexperience in the field of economy . According to proponents of this idea president Hoover administration in the 1920s, according to the prevailing understanding of liberal economy had seen fit not to state intervention in the economy . However, to intervene in the crisis of 1929 has been a great deal of the social cost . When the president decided to intervene then it was too late and both interventions were not successful . For example, to balance the state budget cuts in government spending and tax increase that caused the unemployment and its reduction in the purchasing power of people and caused prices to fall defended. Another indication of the government's inexperience persisted visit was also attached to the gold standard . Government is not bound under the mintage was refusing to follow a tighter monetary policy and economic activity stopped by bulunmayın money in the market , the corporate sector has shrunk . This is more unemployment , which meant less revenue .
If the last reason to be emphasized at the beginning, as stated net creditor in the world was that of America's . Furthermore I. After World War II Germany and Britain wanted were demanding payment of compensation as gold . However, gold stocks were insufficient to earth and America was checking already existing stock . For this reason, and the credit of the said compensation to be paid in goods and services was attempted , but it hit America's own goods and services sectors . As a last resort tariff walls were made to place , but it was only out of foreign trade . After all America has given rashly could not get back the loans .
Eruption of the crisis : 13 Friday [ Change | Change source ]
New York Stock Exchange for 29 years at the beginning of 1928 until the beginning of October, in the process , is also rising and high price / earnings ratio was bringing . When it comes to barely 3 October 1929 , in accordance with the above reasons have stopped the progress of the stock market 's shares had fallen even a few large conglomerates . On 21 October this fall to dispose of them with papers of foreign investors has accelerated and the " Black Thursday " on Thursday, October 24, 1929 known as the stock market hit bottom . With the price of 1929 there was $ 4.2 billion . October 29, 1929 the day when we look at the price of a year 's profit before reset even seen. The difference between 21 to 29 October 1929 the Dow Jones industrial average fell to 230 from 328 indicates . In this process, the bank steeped in 4000 , was destroyed thousands of people 's assets .
Poor in Oklahoma during the Great Depression
These people were driven to starvation and tried to live by selling fruits and vegetables can grow . For a moment there was no money in the market that meet the needs of people go to the road in a sort of barter exchange economy came back. Tangible assets together with people also lost social status and mental health . The effects of depression II. Until World War II continued for a period of nearly 10 years .
The effects of the crisis on industrialized countries was almost the same . Wholesale price index decline in (40-60% old), raw material prices hit bottom (50% vicinity) , securities prices and the stock market 's decline ( 30-40% ) , world industrial production decreased ( 35-45% between ) , the number of unemployed in the increase ( 50 million people are unemployed ) , trade hit the bottom ( 55-80% ) and was the proliferation of bankruptcy .
Roosevelt and his "New Deal" [ Change | Change source ]
Great collapse of the American people that the bill was brought to the Hoover administration . Whether Hoover elected president in the next election was evident . Instead, he called for drastic changes in the economic system promising programs Roosevelt was elected . Roosevelt "New Deal" between the years of 1930-37 I had the opportunity to practice . Come to deal with the effects of the crisis of 1933, the year was one of the more felt . Profitability in the economy had collapsed. There was a huge lack of demand because a lot of people's purchasing power has fallen . Roosevelt, both socially and economically in such a period of a reform program which was going to deal with and great authority . For the first time in the history of the American economy was exposed to government intervention .
Roosevelt began to work with the banking sector . At that time, the industry 's gold and foreign exchange liquidity is low, the presidency was controlled by itself . The Central Bank was established for the first time . Deposits were guaranteed by the state . Up to 500 new regulations to the banking system was corrected . In the real sector , it was decided to increase profitability . Subject to the State under its control applications allow the high price of industrialists and again as production was limited for this purpose . Request to resolve the problem , the state can be considered a high level of real wages has set a minimum . Solving the problem of unemployment by reducing working hours was attempted. Has made a number of new programming in agriculture . However, some aspects of these programs were in conflict with each other . States on the one hand production quotas to keep prices high while putting what they produce on the other hand the price of a certain height had promised to take them . This is causing farmers would not want to do more production . Roosevelt's government is spending policy was a policy of balance . Küstürmemek industrialists who are opposed to government intervention in the private sector is not interested in spending in areas that require large investments were made. In these sectors with job openings in the field of reducing unemployment and increasing demand in an attempt to tackle the problem of low demand .
After the Crisis : Germany [ Change | Change source ]
Depression reached full employment , defeating the first industrial country , is Germany. Germany, without inflation with the original method of financing has managed to revive the domestic market . However, Germany's exports to the world market was not open. German factories and raw materials needed to find the version field to provide . South America, Central Europe , the Balkans and Turkey to get free currency and sell the goods they were having difficulty . Germany, direct free exchange transfers without the goods to the goods exchanged realize the possibility of providing mutual trade ( counter -trading ) models , adopting free market in the export goods at affordable rates unsalable country of the customer went into a state . The high value of exports of the agricultural economy of goods bought and sold them products of their industry . Planning and resorted to similar methods democracies such as France, the United States and moderate solutions were given up to the craze of unemployed in Germany fell upon the nazi totalitarianism . Thus the crisis , II. Would be the primary cause of World War II .
Turkey in 1929 in the face of crisis , in order to ensure development had to increase export and import , to ensure that the Republic of Turkey was followed by various policies .
In 1933, when Turkey started to be applied in non- payment clearing and settlement systems are applied. Goods clearing system in the field, is based on the principle of taking the goods . This system is connected to exports , imports , exports would have been encouraged . Indeed, the Turkish government as much as possible to deal with all countries, clearing and settlement efforts , and of the countries engaged in trade and payment agreements with Turkey , introduced on imports of priority . In addition, given the importance of the standardization of export goods , exports were encouraged in this direction by the Law No. 1705 dated 10.06.1930 to the Government to take measures giving , nuts and eggs are exported , starting from the quality control of exported goods were made . Previously carried out by the various authorities established this business in 1934 was transferred to Türkofis . Office , the control and inspection functions besides making market research and international trade and payments agreements were also given the task of preparing .
In 1929 , the world experienced the greatest economic crisis is a crisis . This crisis the world at least I. and II . World War is also clear that much influence . The Great Depression of the 1930s caused the world economic crisis when looking statement will affect the dimensions of the history of mankind there can sometimes be seen easily . Therefore, the economic crisis is not only economic but also social and even political phenomenon should be viewed as
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