What was the situation in the United States after the economic crisis of 1929?

Objectively speaking, from an economic point of view, the economy always develops periodically, and there will be a trough in a certain period, generally speaking, when there is a "recession" and "inflation" in the society, it indicates that the economic crisis is not far away.

The economic crisis, simply put, is because of overproduction and consumers don't have that much money to buy; As a result, there is a large backlog of products. From the perspective of the "supply-demand" relationship, overproduction will inevitably lead to insufficient demand. The capitalists do not make any money, and would rather throw away the products than help the poor.

In order to ease the contradiction between product and consumption, the capitalists not only destroyed commodities, but also laid off workers en masse, reduced the scale of production, and even stopped work and production.

Why do the capitalists do this? Because from the autumn of 1929, an economic crisis of unprecedented scale swept first towards the United States, and then over the entire capitalist world. In this crisis, the economies of the major countries of Europe and the United States were paralyzed, and production was set back by more than 20 years.

The crisis, which lasted for four years, closed a large number of businesses and left more than 30 million workers unemployed. The total damage caused by the crisis is about $250 billion.

There will always be an equilibrium point between supply and demand, and it will fluctuate up and down at that point. This is the law of the market economy, and it is not unique to capitalist society.

The most protracted, deepest, and most severe cyclical world economic crisis in the history of the capitalist economy. It first broke out in the United States, and on October 24, 1929, the New York market ** in one day**, and the great crisis began. This was followed by bank failures, a decline in production, the bankruptcy of factories, and the loss of workers' jobs.

The Great Crisis spread rapidly from the United States to the whole of Europe and the whole world except the Soviet Union, and was the largest, longest-lasting, and most profound economic crisis that human society has ever encountered.

Specific reasons: the contradiction between production (supply) and sales (demand).

The gap between the rich and the poor is too large: the capitalists blindly expand production, the people are relatively poor, and their purchasing power is lower than their productive capacity.

The excessive expansion of credit consumption has caused a false prosperity in the market and exacerbated the contradiction between production and sales.

Excessive speculation fails to reflect the actual situation of economic operation, resulting in a false prosperity of the economy and covering up contradictions.

The influence of laissez-faire economic ideology has left the entire social production in a state of inactivity.

Root cause. The contradiction between the socialization of production and the private ownership of the means of production, that is, the basic contradiction of capitalist society.

Direct cause. Speculation is rampant, masking the contradiction between production and sales.

Policy reasons. Domestic policy failures, namely economic crises, are the product of laissez-faire policies.

Impacts: (1) Economic adjustment deteriorates international relations: In order to extricate themselves from their predicament, major capitalist countries have raised tariffs and implemented currency devaluation. These practices have led to further chaos in the world economy and a deterioration in international relations.

2) Triggering a political crisis: the economic crisis of unprecedented severity is protracted, fascism is beginning to spread in some countries, capitalism is facing a serious political crisis, and the bourgeois democratic system is crumbling.

Root cause: the basic contradictions of the capitalist system.

The main reasons: contradictions in production and sales, instability in financial markets.

Direct cause: New York market crash.

1: The basic contradictions (root causes) of the capitalist system

2: The widening gap between the rich and the poor restricts the growth of real consumption power and widens the contradiction between supply and demand 3: Installment payments and bank credit fuel a false boom.

4: Unrestricted speculation causes social unrest.

In a nutshell.

Excessive boom bubbles have led to false booms in the real estate and manufacturing sectors. Money.

Being put into ** is not used by the manufacturer to make the product, but continues to **** to make the ** situation very good, but the consequence is that it does not create value in the meantime, but the former shareholders (and also manufacturers)-**-manufacturer-** cycle and lose money, and finally lead to a decrease in the amount of investment, the bank cannot provide loans, does not get interest on the loan, and at this time the number of depositors increases (because of lack of confidence in the economy), the bank is tired of paying the interest to the depositors, and finally goes bankrupt. Banks go bankrupt depositors' savings** and at the same time** big dive and the economic depression comes.

Overspending and repaying debts. The terrorist activities carried out by the Bilderberg Group in order to reduce the world's population. Then it led to 2 battles.

This is also the cyclical law of the monopoly of private big capital, and the inertia of economic expansion cannot be stopped, leading to loss of control and chaos. Western capitalist society, with its selfish and short-sighted concept of interests, cannot regulate the economy and lead the direction of society.

Fundamentally.

In the future, it is necessary to explain from the basic contradictory movement of capitalist self-righteousness. The movement of the basic contradictions of capitalism has stages, and the sharpening of the basic contradictions is a stage and a form of expression in the process of this movement. When the basic contradictions tend to be acute, economic crises will erupt under the interaction of other important contradictions in the economic field (such as the contradiction between production and consumption, the contradiction between enterprise production and social production, etc.).

Specifically, there are the following reasons. The first is caused by the imbalance of the economic structure, that is, the so-called structural crisis. Among them, the imbalance of industrial structure is a concentrated manifestation.

The industrial structure directly leads to contradictions in the employment structure and product structure, resulting in economic chaos and crisis. If the large-scale readjustment of the economic structure is not handled well, it may also lead to an economic crisis of overproduction. Second, it is caused by the contradiction between production and consumption.

In particular, there is a serious backlog of important means of production for a long time, which may trigger a crisis if it spreads to other fields. The third is caused by the failure of macroeconomic regulation and control policies and measures. ** Monetary policy, fiscal policy, industrial policy, and income policy used for macroeconomic control, if used incorrectly, will also induce economic crisis.

Fourth, when the world economy is in a recession or serious problems occur in a certain country or in a certain field, it may trigger a regional economic crisis or even a world economic crisis.

Root cause: the basic contradictions of the capitalist system.

The main reasons: contradictions in production and sales, instability in financial markets.

Direct cause: New York market crash.

Speaking of the collapse of the United States in 1929, it is inseparable from the 10-year-long economic crisis that broke out at that time. In the early 30s of the 20th century, driven by technological innovation around the world, the United States implemented a free and open economic development policy, the reason for which was that after the end of World War I, the European powers were severely attacked, cities were destroyed, agriculture was paralyzed, and the former empire on which the sun never set was also dying. The economic prosperity has led to the activity of the market, coupled with the open economic policy and the relative stability of the world economy after the war, so that the United States can see a broad market, leading to the formation of a blind follow of investment in China.

Due to the connivance of blind investment and liberal economic policies, a situation in which supply far exceeds demand, there is a hidden danger of excess productivity, and there is a serious disconnect between productivity and production relations, and then a large number of workers are unemployed, a large number of farmers and businessmen are bankrupt, and there is a sharp contradiction between supply and demand at home and abroad, which has led to the outbreak of an economic crisis, which is also the fundamental cause of the collapse of the first jumping building. This economic crisis began with the collapse of the United States in 1929, and quickly spread to all parts of the United States, and then spread to Europe and the world, which is the largest, longest-lasting, and most far-reaching economic crisis in world history.

The economy of the United States was completely paralyzed, and Roosevelt's New Deal saved the United States, without Roosevelt, there would be no United States now, Roosevelt was re-elected for several terms, and he was the only one in American history who got more than two terms.

rectifying finance and restoring bank credit; Reduction of cultivated land and disposal of agricultural and animal husbandry products, which shall be compensated by **; Adoption of the National Industrial Recovery Law to adjust industry; Construction of many public works.

The central measure is the restructuring of industry. It's Roosevelt's New Deal, but there's a lot more. I won't introduce them one by one, but the one that made it famous was Roosevelt's New Deal.