The global economic crisis

October 24, 1929 is in the history books as a black day. The shares, which had increased in value for years, now suddenly plummeting. Panic broke out. The one on other day there was an economic crisis and people didn't know what they had to do to turn the tide. They also had no crisis plan. Thanks to the industrial revolution was one in America got used to a good, strong, growing economy.

However, they can see it coming. Because from 1924 went there in America on average 2 daily banks bankrupt. And Europe was also not inviolate from the 1st World War. England and Germany had a lot of money borrowed from America to be able to buy submarines, for example, war. Germany in particular had a lot of money lent.

After the war had almost all countries had more debt than they could pay. The debts were paid by means of borrowed money. Companies borrowed borrowed money from. On this Black Friday in 1929, no one could get more money in America. Still a lot of people in panic all their savings and loan money back. But not everyone could get his money back. Within 2 months was an amount of 40 billion gone up in smoke. Everyone had thought all this time that the money actually existed. But it were only loans and no one had a collateral. This money came.

America stopped immediately with the loan of money and asked all the borrowed money back. Germany had a lot of money borrowed from America. It had been a towering penalty imposed after the 1st World War. They were designated as guilty of the war and had to pay. But that they could no longer when America had the money tap. In 1930, the first banks in Germany. Also started becoming more factories to lay off their workers.

Trade fell silent. No country still had money to import goods. But because no one could no longer export the countries also imported more. And so they could not earn more money. The whole economy effectively processed fibres all in one. The crisis was getting worse. It was the biggest economic crisis in history.

On a Saturday in March 1932 there were new price falls on Wall Street. (The American money trade) Everyone wants to sell his shares at all costs. Thousands of shares are for only a fraction of the original value sold. The American people hurriedly grabs the savings books from the la and run to the bank to collect their money. But the vaults are empty. The banks require money from Wallstreet. But there is nowhere more money.

The epoch that now dawned we call the crisis years. In America president Roosevelt had a plan devised to the crisis. In 1933 he seized in in the economy. He gave unemployed benefits. But the crisis was unstoppable.

Thanks to the high level of unemployment in Germany was in many houses no breadcrumb to find more. Also they had no more wood to stoke the House warm. The people in this epoch saw the future bleak. Something had to change. Many people wanted a strong leader who could reverse the tide. No wonder then, that they believed the stories of Hitler. He promised them work and a new future.


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