Was the U.S. economic crisis of 1929 1933 caused by deflation?

In fact, I think that the current economic crisis is caused by deflation rather than the inexplicable economic policies of the United States.

Before this crisis, the United States had prospered for 20 years, and the United States ** has lasted for nearly 10 years of bull market, and it should be very common for economic recession to occur at this time, but Hoover**'s economic policy at this time is very unusual, first of all, he signed the 'Smoot-Hawley Tariff Act' to raise tariffs to protect the United States' domestic industry and agriculture, and soon other countries also used the same means to retaliate against the United States, which led to the collapse of the world's ** system. Second, at a time when the United States is experiencing the worst deflation in history, the Fed is still maintaining a disinflationary and economic tightening policy, that is, keeping interest rates high. And at this time, Hoover even pushed Congress to pass a bill to raise the tax rate, and the increase in the tax rate was unprecedented.

Many people know that raising interest rates and tax rates is the most effective means of cooling down when the economy is overheating, but Hoover doesn't seem to understand this at all, and his policies threw the US economy, which was frozen in deflation, into the cold room.

I watched a documentary, which mainly talked about the monopoly of international large enterprises, such as Standard Oil, Iron and Steel King, Beef King, etc., all controlled more than 60% of the market share of the United States without monopoly law, and made it impossible for small companies and new companies to enter the industry, so as to monopolize and set their own prices in the end. As a result, the unemployment rate continued to rise, and finally the ** as the fuse swept the entire United States and the European continent in an instant.

This thing isn't that hard, just take a good look. 77

1. It covers a wide range of areas: it affects the entire capitalist world, causing crises in the industrial, agricultural, commercial and financial sectors;

2. The duration is relatively long: from 1929 to 1933, a total of 5 years;

3. It was particularly destructive: in 1933 compared with 1929, the industrial output of the entire capitalist world fell by more than 1 3, and the total amount of the capitalist world ** shrank by 2 3.

II. The Economic Crisis of 1929-1933 and Its Effects.

1. Economic adjustment worsens international relations: In order to extricate themselves from their predicament, the 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 has been protracted, fascism has begun to spread in some countries, capitalism is facing a serious political crisis, and the bourgeois democratic system is shaky.

The economy triggered by the United States in 1929-1933 led to a global economic malaise for the following reasons:

1. Fundamental cause: the basic contradiction of the capitalist system, that is, the contradiction between the socialization of production and the private ownership of the means of production.

2. Direct cause: The contradiction between production and sales in the whole society causes a relative overproduction.

3. Specific reasons: the gap between the rich and the poor is too large, ** excessive speculation, installment payments and bank credit overflow The economic crisis of 1929 occurred after the formation of the whole world. At this time, the world economy had finally taken shape, and the economies of various countries were interdependent.

An economic crisis is when one or more national economies or the entire world economy contract over a relatively long period of time (negative economic growth rate). The economic crisis is a crisis of relative overproduction that breaks out periodically in the course of capitalist economic development, and it is also a decisive stage in the economic cycle.