How terrible was the Great Depression in history?

Historically, during the Great Depression, countless people lost their jobs and could not make ends meet, the streets were full of beggars, and many people even starved to death on the streets.

During the global economic crisis, the economic losses of Western countries were as high as 250 billion US dollars, which was higher than the losses of World War I, and factories within a radius of dozens of kilometers became no man's land, and the wages of American workers were pushed down to the level of Chinese coolies.

The Great Depression was terrible in history, when many people could not afford to eat, and many people even starved to death.

The economic losses amounted to $250 billion, which was higher than the losses of World War IBritain's industrial output is reduced by 24 percent a year, France's industrial output is reduced by one-third a year, and 5,000 enterprises and 50,000 businessmen go bankrupt every year. Industrial production in the United States has fallen by 46 percent a year, more than 10,000 banks have failed in four years, and 13 million people have lost their jobs completely, and another 5 million are semi-unemployed. According to the records of American newspapers at the time, many of the once prosperous factory areas, within a radius of dozens of kilometers, have all become no man's land, and only rusty machines remain.

Most people face the dilemma of being unemployed and unemployed, and more than 90 percent of children in the United States are severely malnourished.

During the Great Depression, many people could not eat, most families could not open the pot, they were hungry every day, and many people starved to death during that period.

Historically, when there has been a Great Depression, it has been accompanied by plagues, famines, and wars. Especially in the United Kingdom, during the period of the Great Depression, vicious cases were still frequent.

As a direct result of the Great Recession, unemployment has soaredThen, a large number of people will grab supplies in order to survive after losing their jobs, which eventually leads to social problems. The first thing that the Great Recession brings is the closure of a large number of factories, and then in order to save the market, it will continue to put money, if it can be controlled at this time, then the market will be stable in the later stage, if it cannot be controlled, then the entire market will usher in extremely bad inflation in the later period.

After the Great Recession, the whole society will erupt in turmoil because of the struggle for survivalSo the Great Recession is also a case of reshuffling of the order. In this regard, in the face of the Great Recession, we first have to prepare food and currency to store value, because after the Great Recession, many people do not have enough cash, so although the price of goods is falling, everyone cannot afford it. So cash will be worth more and more at this time.

To sum up, this is what the Great Recession will bring.

Related Notes:

A recession can cause a number of economic indicators to decline at the same time, such as employment, investment, and corporate earnings, as well as other accompanying phenomena such as prices (deflation). Of course, if the economy is in a state of stagflation, prices can also be fast**.

A devastating recession is known as an economic collapse. Recessions are associated with excess inventories of goods, a decline in consumption (possibly due to a loss of confidence in the future), a lack of technological innovation and new capital accumulation, and** randomness.

One of the characteristics of a market economy is the existence of business cycles, however recessions do not always exist. In the field of economics, there is a lot of debate about whether intervention can smooth out the business cycle (Keynesianism), magnify the effects of the consequences of the business cycle (real business cycle theory), or create the business cycle (monetarism).

The worst recession in history occurred in the thirties of the 20th century, when the unemployment rate was about 25%, which means that 1 in 4 people lost their jobs. The hardships caused by the Great Depression were not limited to reduced incomes, for some people, it also undermined normal life and healthy family relationships.

The above content reference: Encyclopedia - Economic Recession.

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.

As a result of the decrease in consumer spending, the products produced by the factories cannot be sold, the workers are in a state of loss, the factories are unable to pay wages or lay off workers, and unemployment increases. Unemployment increases, incomes fall, and consumer spending decreases, creating a vicious circle. So when the economy is booming, the unemployment rate is lower, the products are abundant, the ** is cheap, and everyone has money to spend.

Due to the great abundance of products, the supply of products in the factory will exceed demand, and the production will be reduced endlessly, and some will reduce production. But the demand is still increasing, and finally slowly as the inventory decreases, **start**. The money in people's hands is slowly decreasing, and some of them are starting to borrow money to consume, ** starting to **, and consumer spending is starting to decrease again.

The economy enters a recession, and after a period of depression, it begins to expand again, and slowly prosper again, and the economy goes through four cycles, recovery, prosperity, recession, and depression, just like spring, summer, autumn and winter, and so on.

Some of the consumption expenditures of one person are the income of another person, and if the consumption expenditure decreases, the income of some people will decrease, and the income will decrease, which in turn will lead to a decrease in consumption. In the end, production shrinks or the goods produced are squeezed, and they cannot be sold.

The modern economy generally uses credit overdraft consumption to increase domestic demand, if moderate, it is conducive to economic development, however, excessive overdraft consumption is harmful to the economy. If a family starts to have no money to spend, the bank gives a limit of 100,000 yuan, and he consumes the 100,000 yuan a year ago, and in the second or third year, he no longer spends excessively in order to repay the debt. Because the factory saw the increase in consumption in the first year, it felt that there was a market and would increase production, but in the second and third years, the factory produced a lot of goods, and because people had no money to consume, they could no longer spend through loans, and the income was used to pay off debts.

So it leads to overproduction. This kind of product is relatively in surplus, and some products are in short supply, such as daily necessities, food. That's why when the economy is in crisis, the food and vegetables in the supermarket are snapped up.

Maybe the car, or some mid-to-high-end goods, can't be sold. Factories will go out of business.

Inflation, store closures, bank bankruptcies, worker unemployment, sharp declines in production, etc.

1. Inflation.

Inflation, generally defined as: under the credit money system, the amount of money in circulation exceeds the actual needs of the economy, resulting in the depreciation of the currency and the price level of the comprehensive and sustained**. When the amount of money in circulation in the market increases, the people's money income increases, and the actual purchasing power is greater than the output supply, resulting in prices and inflation.

2. Tuanque's store closed down.

Production fell and unemployment surged, and shops went out of business.

3. Bank bankruptcy.

If a bank goes bankrupt, will depositors' deposits be lost? The collapse of banks is early in marketization, and who will guarantee the people's money. Yan Qingmin, vice chairman of the China Banking Regulatory Commission, said at the Peking University Economic and Wealth Forum that the China Banking Regulatory Commission is brewing to speed up the introduction of bank bankruptcy regulations, which has stirred up a thousand waves.

4. Workers are unemployed.

If there is no way to sell goods, workers will not have jobs, and they will become a business.

5. Production has decreased sharply.

Goods are unsalable, profits are reduced, and production (mainly industrial production) is sharply reduced.

There have been several economic crises in history, such as in 1972, there was a bubble economy in the South China Sea to make the social savings at that time continue to expand, a large number of idle funds have no way to buy products, can only be forced to save, in this case in the South China Sea company under the demonstration effect of the first investment, but it appeared, domestic and foreign investors began to sell the South China Sea, so that the South China Sea stock price plummeted. There was also the great economic crisis in the United States in 1837, in which the United States also fell into a very serious situation of sharp decline in money circulation, and in 1907, the entire banking industry in the United States also had an economic crisis, which led to the inability of many commercial banks to invest in business, and in this crisis, nearly 300 American companies went bankrupt. The Great Depression is very terrible, it will cause many businesses to go bankrupt, and the economic output of the whole country will be severely reduced, and in this case, the lives of ordinary people will become extremely miserable.

The Great Depression mainly refers to the economic crisis, and broadly speaking, the Great Depression is an economic recession that broke out in the United States in 1929. In this case, the unemployment rate of many people is rising, and many adults have no income.

In the face of the economic crisis, what each of us can do is to take precautions, adjust our funds as much as possible, and do not overspend. If you have the conditions, you can actually consider allocating some real estate with your own money, and you can use the money to buy a house in a big city, the reason for this operation is because if there is an economic problem, the state will protect the real estate industry as much as possible, so it is also more reliable.

In the end, the terrible spectacle of an economic crisis is something that no one wants to encounter, and there may be some opportunities within it.

Since 1825, when Britain began to experience the first periodic crisis of overproduction, it has occurred at regular intervals. The Great Recession can have a serious impact on lives.

The economic crisis of '08 was a relatively big financial crisis, which caused many people to lose their jobs, and the Great Depression would make many people lose their income.

Whatever industry has low industrial concentration, what industry is the most profitable. Industry concentration is the most basic and important factor in determining the market structure, which reflects the degree of competition and monopoly in the market. Projects with low industry concentration have a lower degree of competition and monopoly in the market, and have the most stable development, so they will have a better chance of surviving the Great Depression.

The Great Depression.

The effects of the Great Depression of 1929 were more far-reaching than any recession in history. This economic depression was the beginning of the agricultural product ****: it first occurred on the ** of timber (1928), which was mainly due to the competition of timber in the Soviet Union, but the greater catastrophe came in 1929, the overproduction of wheat in Canada, and the United States forced down the ** of all agricultural products from the origin of basic grains.

In Europe, the Americas, and Australia, the agricultural recession was further exacerbated by the financial collapse, especially in the United States, where a speculative boom led to the withdrawal of large sums of money from Europe, followed by a panicked Wall Street **** in October 1929. In 1931 French bankers recovered the loan to the Austrian bank, but this was not enough to pay off the debt.

The catastrophe bankrupted the institutions of many countries in Central and Eastern Europe: it led to a moratorium on the repayment of foreign debts by German bankers in order to protect themselves, and in turn endangered British bankers who had invested heavily in Germany. The shortage of capital has led to a sharp decline in exports and domestic consumption in all industrialized countries

The absence of a market inevitably closes factories, and the less goods there are, the less goods are transported, which inevitably harms the shipping and shipbuilding industries. In all countries, the consequence of the recession was mass unemployment: 13.7 million in the United States, 5.6 million in Germany, and 2.8 million in the United Kingdom (the largest figures in 1932).

The Great Depression also had a major impact on Latin America, resulting in the loss of foreign capital and commodity exports in a region that was almost completely dominated by European and American bankers and merchant entrepreneurs. It is estimated that during the Great Depression, the world lost $250 billion in money.

Black Tuesday".

On October 29, 1929, everyone in the New York Stock Exchange fell into a whirlpool of selling. The stock index suddenly jumped 40 percentage points from its previous high of 363, and thousands of Americans watched their life savings disappear in a matter of days. This is the darkest day in the history of the United States, and it is the most influential and harmful economic event in the history of the United States, affecting Western countries and even the whole world.

After that, the United States and the world entered a decade-long period of economic depression. As a result, this day is considered to mark the beginning of the Great Depression and is known as "Black Tuesday" because it falls on Tuesday.