The causes of the Great Depression of the 30s

**Laissez-faire of the economy, serious lack of regulation.

A recession is a terrible thing than a recession, and its negative effects are obvious, the first is a sharp increase in unemployment, it is difficult to find a job, the second is the closure of businesses and a serious decline in the life of the economy as a whole, and the third is a serious decline in the assets held.

Why was the 1929 economic crisis called the Great Depression? This is easy to understand, that is, the economic crisis has led to a great recession in all walks of life, and the problem after the recession is employment. Everybody is unemployed, everybody can't find a job, because the company itself is probably going to go out of business, and there aren't as many jobs for employees.

This Great Depression means that everyone is now in a state of decadence with nothing to do, not on everyone's initiative, but a vicious circle caused by the economic environment on the mainland. It is now that the money is becoming less and less valuable, and then now the enterprise itself has no money, and the normal production management of the enterprise needs 1,000 people, and then as long as he forms a normal operation, he can guarantee about 15% of the profit every year to go to the various costs of employees and the like can also develop normally in the economy, even if there are occasional fluctuationsThe company may not make much money this year, or even lose money, but it doesn't matter, the company still has a little foundation, and the company can afford it. <>

But now in the Great Depression, this is not a simple activity, that is, the enterprises have reached the link of bankruptcy, and the original dollar to buy a bottle of mineral water, now a dollar to buy a mineral water bottle. In this case, the funds that the enterprise originally stored, for example, had a hundred million yuan, and it was completely able to purchase normal means of production to organize production and pay wages to employeesIn this case, the economy of the enterprise will collapse, the enterprise is the cell of the social economy, and if the enterprise collapses, the entire social economy will collapse. <>

At that time, the biggest concern was how much my money would be worth tomorrow, and would I be able to buy anything? Now you can buy 5 catties of pork or 8 catties of pork with 100 yuan in your hand, then you may only be able to buy 4 catties after tomorrow, and you can only buy one catty after the day after tomorrow. peopleThe simplest and most effective way to ensure the purchasing power of the currency in our hands is to exchange it for goods, but there are not so many goods**, so it creates a vicious circle.

Because the economic crisis of 1929 led to a great economic collapse, like a cold winter, and a depression of all trees, it is called the Great Depression, which is more vivid.

The economic crisis of 1929 had a very big impact on the whole world, many factories around the world closed down, and many people lost their jobs, and many people did not have food at that time. The impact on many people is very large, which is why it is called the Great Depression.

This was because the economic crisis at that time was so severe that many industries were in a particularly severe depression or recession, and the number of unemployed people was also very large.

Summary. 1.As a result, the rural economy withered.

The Great Depression has made the international agricultural products such as rice, wheat, tea, and raw silk the world, dragging down China's agricultural products for many years. Agricultural products ****, resulting in a sharp decrease in the cash income of Chinese farmers. And the industrial necessities that farmers need to buy with cash, such as cotton yarn, cotton cloth, kerosene, etc., are still slightly in the same period.

This fell and rose as a result of a 60 per cent reduction in the real purchasing power of the peasants in 1931-1933.

The impact of the Great Depression on the modern economy.

1.As a result, the rural economy withered and the Great Depression made the international agricultural products such as rice, wheat, tea, and raw silk the world, dragging down China's agricultural products year after year. The consumption of agricultural products has led to a sharp decline in the cash income of Chinese farmers.

And the industrial necessities that farmers need to buy with cash, such as cotton yarn, cotton cloth, kerosene, etc., are still slightly in the same period. As a result of this decline and rise, the real purchasing power of the peasants fell by 60 per cent in 1931-1933.

The impact of the Great Depression not only directly reduced peasant incomes, but also destroyed the rural financial credit system, which was able to provide the peasants with the last guarantee. Coupled with the dumping of low-priced foreign agricultural products in the domestic market, ** no longer returns from the city to the countryside, the ** flow between the rural and urban potato bridges is blocked, and the ** rural area is exhausted. The collapse of the rural financial system.

It is difficult for farmers to get loans again, and pawnshops refuse to accept clothing, farm tools and other items as collateral, or even use land as collateral, because the price of rural land is also sharply reduced, and some areas have fallen by more than 50%.

2.Hit the deflation brought about by the Great Depression of the national barbecue hole and made the world's agricultural products ****, China's rural areas were the first to be hit hard, farmers' incomes fell sharply, lost their basic consumption capacity, and the demand for cotton cloth and other industrial products shrank greatly. At that time, more than 80% of the Chinese were farmers, and the shrinking demand of farmers represented the contraction of the entire domestic market, which dealt a blow to the newly emerging Minnian dry industry.

The Great Depression (the Chinese term) generally refers to the Great Depression (the Great Crisis that originated in the United States between 1929 and 1933), and the Great Depression (The greatest depression) refers to the economic crisis that originated in the United States between 1929 and 1933 and later spread to the entire capitalist world, including the United States, the British Empire, the French Third Republic, Germany and the Japanese Empire. The Soviet Union, a socialist country, was not affected by the split, but on the contrary fulfilled its five-year plan. This crisis is characterized by a long duration, a wide range and a strong destructive force, and its roots lie in the basic contradiction of the capitalist system, that is, the contradiction between the socialization of production and the private ownership of the capitalist means of production.

The Great Depression was the longest economic depression in modern society, which not only led to a long period of mass disappointment, but also changed social relations, destroyed the ruling party, helped the Nazi Party and fascists come to power, and eventually led to the outbreak of World War II.

We may be experiencing a once-in-a-decade Great Depression.

Many people think that the economic crisis means that the land is in shambles, and the people are not able to make ends meet, and everyone does not even have enough to eat. In fact, the economic crisis is overcapacity, insufficient effective demand, and the gap between the rich and the poor. Effective demand is the demand that people are able to and are willing to buy.

For example, 10,000 loaves of bread are produced in the market, and the rich can indeed afford it, but the rich people only account for a minority, and they can only digest 1,000 if they die; And the vast majority of ordinary people, although they also have needs, they can't afford it.

So it's not that there are no goods in the market, but that the goods can't be sold. During the Great Depression of 1929-1933, agricultural capitalists and large farmers destroyed the "surplus" of their products, replaced coal with wheat and corn, and poured milk into the Mississippi River, turning the entire river into the "Silver River." The homeless in the city, on the other hand, have to build a rudimentary shelter out of wooden planks, old tin sheets, oilcloth and even kraft paper.

1. Don't resign and start a business casually. The general environment is not good, and there is a job with a stable income to cherish. In addition, the couple try not to be in the same industry, and try not to buy their own company's **, their labor assets have been placed in the company, if you reinvest, it is really a win, a loss.

2. Optimize the proportion of assets. If the environment is not good, our ability to resist risks will also be reduced, so we should not hold too many high-risk assets, and we can take out a part of them to replace them with low-risk imitation assets, such as treasury bonds, bank deposits, annuity insurance, increased whole life, etc.

3. Control debt and cut unnecessary expenses. Be sure to save more money, in the case of ensuring sufficient cash flow, if there are spare funds, you can consider paying off some debts with higher interest rates, because when the economic environment is not good, the return on investment will also be affected, and you should consider how to maximize the benefits of the money in hand.

First of all, due to the contradiction between the socialization of production and the private ownership of the means of production, prosperity does not bring common prosperity, on the contrary, it exacerbates the gap between the rich and the poor. In the United States, for example, by 1929, the income of the rich, who constituted 5 per cent of the population, accounted for almost 1.3 of all incomes, while the poor households with an annual income of about $2,000 accounted for 60 per cent of the total number of households. This significantly limits the purchasing power of society.

Second, even in boom times, the industrial sector was woefully under-launched. A large number of workers lost their jobs. From 1921 to 1929, the average number of unemployed people in the United States was more than 2.2 million per year.

The unemployment rate in Britain was also at its lowest in 1927, while Sweden never fell below 10%. The existence of unemployment necessarily reduces the purchasing power of society and prepares the conditions for a crisis. Third, there is an accumulation of unsalable agricultural products and primary industrial products on the international market.

Such as wheat, sugar, coffee, rubber, copper, etc. Fourth, the real estate and speculation frenzy that accompanied the boom of the 20s (especially the latter type of speculation, which caused the market to soar) increased the instability of financial markets. At the end of August 1928, the average market in the United States was four times what it had been five years earlier.

This unprecedented rampant financial speculation prepared the conditions for the collapse of the monetary and credit system.

Main reasons: overproduction; The root cause: the shortcomings of the capitalist system.

Taking history as a mirror, we can know the rise and fall. Welcome to the historical view of cloth, I am... Today we are going to talk about the famous Great Depression in the United States. From 1929 to 1933, the economic crisis was like a tsunami, sweeping the whole world.

From 1929 to 1933 the economic crisis broke out in the United States, factories collapsed, banks went bankrupt, workers lost their jobs, this crisis was wide-ranging, long-lasting, and destructive, almost all the capitalist countries of the world were not spared, and by 1933, the level of industrial production in the capitalist countries had regressed by 20 years, and industrial production had fallen by 20%. People born in that era were often malnourished, so they were also called the "Depression Generation".

Hope it can help the landlord

The fundamental cause of the economic crisis, the worldwide economic crisis, is the basic contradiction of capitalist society, the contradiction between the socialization of production and the private ownership of the means of production, the blind production of enterprises at that time, regardless of the supply and demand relations at that time.

Real estate and ** speculation are more serious, and the bubble economy is serious.

At that time, ** still firmly believed in liberal policies and believed that the "market" could heal itself.