美国经济大萧条英文介绍
The great depression information经济萧条
1) General introduction about the Great Depression. (Definition/Background Introduction)2) The cause and the development of the Great Depression. How do all the nations deal with the Great Depression.3) The political, economic, and the social influence of the Great Depression on the world nations.The Great DepressionThe Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world.Though the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929.(During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929)Besides ruining many thousands of individual investors,(个人投资者)this precipitous decline in the value of assets greatly strained banks and other financial institutions, particularly those holding stocks in their portfolios.Many banks were consequently forced into insolvency（破产）; （by 1933, 11,000 of the United States' 25,000 banks had failed）The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the downward spiral. The result was drastically falling output and drastically rising unemployment; (by 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30 percent of the work force.)The Great Depression began in the United States but quickly turned into a worldwide economic slump owing to the special and intimate relationships that had been forged between the United States and European economies after World War I.The United States had emerged from the war as the major creditor and financier of postwar Europe, whose national economies had been greatly weakened by the war itself, by war debts, and, in the case of Germany and other defeated nations, by the need to pay war reparations.So once the American economy slumped and the flow of American investment credits to Europe dried up, prosperity tended to collapse there as well. The Depression hit hardest those nations that were most deeply indebted to the UnitedStates, i.e., Germany and Great Britain.In Germany, unemployment rose sharply beginning in late 1929, and by early 1932 it had reached 6 million workers, or 25 percent of the work force. Britain was less severely affected, but its industrial and export sectors remained seriously depressed until World War II. Many other countries had been affected by the slump by 1931. Almost all nations sought to protect their domestic production by imposing tariffs, raising existing ones,and setting quotas on foreign imports. The effect of these restrictive measures was to greatly reduce the volume of international trade（by 1932 the total value of world trade had fallen by more than half as country after country took measures against the importation of foreign goods.）The Great Depression had important consequences in the political sphere.In the United States, economic distress led to the election of the Democrat Franklin D. Roosevelt to the presidency in late 1932. Roosevelt introduced a number of major changes in the structure of the American economy, using increased government regulation and massive public-works projects to promote a recovery. But despite this active intervention, mass unemployment and economic stagnation continued, though on a somewhat reduced scale, with about 15 percent of the work force still unemployed in 1939 at the outbreak of World War II. After that, unemployment dropped rapidly as American factories were flooded with orders from overseas for armaments and munitions. The depression ended completely soon after the United States' entry into World War II in 1941.In Europe,the Great Depression strengthened extremist forces and lowered the prestige of liberal democracy.In Germany, economic distres s directly contributed to Adolf Hitler's rise to power in 1933. The Nazis' public-works projects and their rapid expansion of munitions production ended the Depression there by 1936.At least in part, the Great Depression was caused by underlying weaknesses and imbalances within the U.S. economy that had been obscured by the boom psychology and speculative euphoria of the 1920s. The Depression exposed those weaknesses, as it did the inability of the nation's political and financial institutions to cope with the vicious downward economic cycle that had set in by 1930. Prior to the Great Depression, governments traditionally took little or no action in times of business downturn, relying instead on impersonal market forces to achieve the necessary economic correction. But market forces alone proved unable to achieve the desired recovery in the early years of the Great Depression, and this painful discovery eventually inspired some fundamental changes in the United States'economic structure. After the Great Depression, government action, whether in the form of taxation, industrial regulation, public works, social insurance, social-welfare services, or deficit spending, came to assume a principal role in ensuring economic stability in most industrial nations with market economies.The International DepressionThe Great Depression of 1929-33 was the most severe economic crisis of modern times. Millions of people lost their jobs, and many farmers and businesses were bankrupted. Industrialized nations and those supplying primary products (food and raw materials) were all affected in one way or another. In Germany the United States industrial output fell by about 50 per cent, and between 25 and 33 per cent of the industrial labour force was unemployed.The Depression was eventually to cause a complete turn-around in economic theory and government policy. In the 1920s governments and business people largely believed, as they had since the 19th century, that prosperity resulted from the least possible government intervention in the domestic economy, from open international relations with little trade discrimination, and from currencies that were fixed in value and readily convertible. Few people would continue to believe this in the 1930s.THE MAIN AREAS OF DEPRESSIONThe US economy had experienced rapid economic growth and financial excess in the late 1920s, and initially the economic downturn was seen as simply part of the boom-bust-boom cycle. Unexpectedly, however, output continued to fall for three and a half years, by which time half of the population was in desperate circumstances (map1). It also became clear that there had been serious over-production in agriculture, leading to falling prices and a rising debt among farmers. At the same time there was a major banking crisis, including the "Wall Street Crash" in October 1929. The situation was aggravated by serious policy mistakes of the Federal Reserve Board, which led to a fall in money supply and further contraction of the economy.The economic situation in Germany (map2) was made worse by the enormous debt with which the country had been burdened following the First World War. It had been forced to borrow heavily in order to pay "reparations" to the victorious European powers, as demanded by the Treat of Versailles (1919), and also to pay forindustrial reconstruction. When the American economy fell into depression, US banks recalled their loans, causing the German banking system to collapse.Countries that were dependent on the export of primary products, such as those in Latin America, were already suffering a depression in the late l920s. More efficient farming methods and technological changes meant that the supply of agricultural products was rising faster than demand, and prices were falling as a consequence. Initially, the governments of the producer countries stockpiled their products. but this depended on loans from the USA and Europe. When these were recalled, the stockpiles were released onto the market, causing prices to collapse and the income of the primary-producing countries to fall drastically (map3).NEW INTERVENTIONIST POLICIESThe Depression spread rapidly around the world because the responses made by governments were flawed. When faced with falling export earnings they overreacted and severely increased tariffs on imports, thus further reducing trade. Moreover, since deflation was the only policy supported by economic theory at the time, the initial response of every government was to cut their spending. As a result consumer demand fell even further. Deflationary policies were critically linked to exchange rates. Under the Gold Standard, which linked currencies to the value of gold, governments were committed to maintaining fixed exchange rates. However, during the Depression they were forced to keep interest rates high to persuade banks to buy and hold their currency. Since prices were falling, interest-rate repayments rose in real terms, making it too expensive for both businesses and individuals to borrow. The First World War had led to such political mistrust that international action to halt the Depression was impossible to achieve In 1931 banks in the United States started to withdraw funds from Europe, leading to the selling of European currencies and the collapse of many European banks. At this point governments either introduced exchange control (as in Germany) or devalued the currency (as in Britain) to stop further runs. As a consequence of this action the gold standard collapsed (map 4). POLITICAL IMPLICATIONSThe Depression had profound political implications. In countries such as Germany and Japan, reaction to the Depression brought about the rise to power of militarist governments who adopted the regressive foreign policies that led to the Second World War. In countries such as the United States and Britain, government intervention ultimately resulted in the creation of welfare systems and the managed economies of the period following the Second World War.In the United States Roosevelt became President in 1933 and promised a "New Deal" under which the government would intervene to reduce unemployment by work-creation schemes such as street cleaning and the painting of post offices. Both agriculture and industry were supported by policies (which turned out to be mistaken) to restrict output and increase prices. The most durable legacy of the New Deal was the great public works projects such as the Hoover Dam and the introduction by the Tennessee Valley Authority of flood control, electric power, fertilizer, and even education to a depressed agricultural region in the south.The New Deal was not, in the main, an early example of economic management, and it did not lead to rapid recovery. Income per capita was no higher in 1939 than in 1929, although the government welfare and public works policies did benefit many of the most needy people. The big growth in the US economy was, in fact, due to rearmament.In Germany Hitler adopted policies that were more interventionist, developing a massive work-creation scheme that had largely eradicated unemployment by 1936. In the same year rearmament, paid for by government borrowing, started in earnest. In order to keep down inflation, consumption was restricted by rationing and trade controls. By 1939 the GermansGross National Product was 51 per cent higher than in 1929an increase due mainly to the manufacture of armaments and machinery.THE COLLAPSE OF WORLD TRADEThe German case is an extreme example of what happened virtually everywhere in the 1930s. The international economy broke up into trading blocs determined by political allegiances and the currency in which they traded. Trade between the blocs was limited, with world trade in 1939 still below its 1929 level. Although the global economy did eventually recover from the Depression, it was at considerable cost to international economic relations and to political stability。
GREAT DEPRESSION(美国1920年的经济危机)
By 1914, most developed countries had adopted the gold standard with a fixed exchange rate between the national currency and gold—and therefore between national currencies. In World War I, European nations went off the gold standard to print money, and the resulting price inflation drove large amounts of the world’s gold to banks in the United States. The United States remained on the gold standard without altering the gold value of the dollar. Investors and others who held gold sent their gold to the United States, where gold maintained its value as a safe and sound investment. At the end of World War I, a few countries, most notably the United States, continued on the gold standard while others temporarily adopted floating exchange rates. The world’s international finance center had shifted from London to New York City, and the British were anxious to regain their old status. Some countries pledged to return to the gold standard with devalued currencies, while others followed the British lead and aimed to return to gold at prewar exchange rates.
美国经济大萧条英文介绍
美国经济⼤萧条英⽂介绍Economic crisisIn October 24, 1929, American black Thursday, crazy stock trend suddenly appeared in the New York stock exchange, trading a total of nearly 13000000 shares of stock, beyond more than 10 times of the normal daily trading volume. In financial speculation and bubble economy, the soared stock price now moved so that it can not keep up with the speed of price quotes. With many people in bankruptcy with a mountain of debt, even 8 people killing themselves on the day because of Dutch act of debt, the financial panic started. However, this was the largest , the longest, and the worst start of economic crisis in the history of capitalism. In the following four years, the capitalist world sank into the global crisis economically, socially and politically , has been a huge impact, precarious.On the Black Thursday, at 12 o’clock noon, a number of Wall Street financial giants in the Morgan Foundation Office held an emergency meeting, deciding to raise money to save the market. Two days later, the situation temporarily stabilized. But on 28th, Monday, with the wind coming again, 9,250,000 stocks sprung out such as the flood and the financial giants finally were unable to resist with wealth exhaustion, and they issued a statement at night: give up the rescue and panic is unstoppable to come. The next day, Tuesday, at 10 o’clock in the morning, with the stock market opening and the Gong ringing, large amounts of stock was thrown out, even at any price, but not many people wanted to buy with the chaotic scene. At the beginning of stock opening, 3000000 shares were thrown out, reaching more than 8000000 shares two hours later, and more than 12,000,000 stocks closed at one thirty. when shares reached16,410,000 , the stock market finally collapsed and the stock marketfell by12.82%. Hundreds of billions of dollars instantly became nothing and economic crisis has opened a prelude. Later on, the stock continually plunged with stock index 100 points in 1926, 145 points in November 1929 , 102 points in December 1930, and falling to 54 points in December 1931. Until 1933, the situation was extremely serious, even falling to 34 points in June, finally the index had lost 5/6. Nearly one hundred billion U.S. assets burst miraculously disappeared such as soap bubbles. From September in 1929 to January 1933, thirty kinds of stocks fell by 82.8%, from the average of $364.9 to $62.7. In the meanwhile, 20 kinds of railway stock from an average of $180 per share to $28.1, decreasing by 84.4%.The crisis heavily hit the United States firstly, thousands of factories and banks collapsed. There were 26400 companies and 934 banks broken In 1930. In 1931, 28300 companies and 1440 banks failed; In 1932, 31300 companies and 1453 banks failed; In 1933, 20300 companies and 1783 banks also failed. People rushed into banks in a panic to draw a large number of deposits, which caused a great loss of gold reserves as well as capital output sharply decreased nearly being stopped..In early 1933, all banks in the United States were out of business basically . Finance was just the nerve center of modern economy,and its paralysis inevitably led to the entire national economic havoc and the economy in the United States almost collapses, which resulted in continuous decline in America's GDP. In 1929, GDP was $103.1 billion, $55.6 billion in 1933. During the past three years GDP has decreased by half. Ten years later, it went back to $99.6 billion in 1940.What is more , industrial production of USA in July 1932, has fallen to the bottom, contrast in May 1925, plummeted 55.6%, steel fell by nearly 80%, fell by 87% in the machine tool manufacturing, auto industry has declined by 95%.With the economic crisis leading to a large number of unemployed people, people's life became seriously poor and the unemployed in the United States had more than 400 in 1930 to 8 million people in 1931, breaking through the ten million mark in 1932. In 1933, the most serious unemployment went up to 17million, which means nearly a third of the workers in the United States. From October 1930 to March 1931, there were 223000 people out of work among 690,000 workers and 5,000 households losing their homes within only 6 days just were unable to pay the mortgage. The unemployed fully in urban and rural, cold, hunger, and homeless, have been admitted to the Hoover cottage made of wood, sheet metal or paper boxes and so on. The humble dwelling were called Hoover cottage, because when Hoover once was run for President of the United States, he had promised the workers that they could have the chicken to eat and cars to drive.Once in America, about 34,000,000 people had no income, accounting for 28% of the total population, and even a large number of schools went bust. In 1932, only New York, at one time, had more than 30 students out of school and millions of people relied on charity with fear and despair throughout the crisis. This is so called the history of the great tragedy of America.In the early twentieth century, there were a variety of latent crisis factors in America economic prosperity such as large gap between the rich and the poor, wealth is concentrated in a few rich people, so that the majority of people in lower class lacked purchasing power because of poverty. In 1929, the rich in USA, accounting for 5% of the population of the country, had a personal collection of 1/3. At thesame time, the poor households with the annual income of less than $2000 were up to 60% of the whole families. In addition, the number of the pre-crisis unemployment reached about 2,000,000. Another important factor is the rampant speculation, such as speculation frenzy of the stock and real estate , forming the bubble economy. The New York Stock Exchange listed shares increased to from 443,000,000 shares in January 1925 to more than 1,000,000,000 shares of stock in October 1929 , with the face value higher with 3 to 20 times, some even up to 50 times. The the doubled prices and a serious departure from the actual value, the stock eventually fell off a serious cliff on the Black Thursday in 1929.。
经济大萧条的英语
经济大萧条的英语The Great Depression was a severe and prolonged economic downturn that affected much of the world in the 1930s. It began in the United States and spread to other countries, leading to widespread unemployment, poverty, and social upheaval. The causes of the Great Depression are complex and multifaceted, but they can be broadly attributed to a combination of factors, including overproduction, excessive speculation, and a lack of effective government intervention.One of the primary causes of the Great Depression was the overproduction of goods and services in the 1920s. During this period, technological advancements and increased productivity led to a surge in the supply of consumer goods, but the demand did not keep pace. As a result, prices began to fall, and businesses were forced to cut costs, leading to layoffs and reduced consumer spending.Another significant factor was the excessive speculation in the stock market. In the 1920s, many people invested in stocks, often usingborrowed money, in the hopes of making quick profits. This created a bubble in the stock market, which eventually burst in October 1929, leading to a massive sell-off and a steep decline in stock prices. The stock market crash had a ripple effect throughout the economy, as businesses and individuals lost their savings and were unable to invest or spend money.The lack of effective government intervention also contributed to the severity and duration of the Great Depression. At the time, the prevailing economic philosophy was that the government should not interfere in the free market, and that the economy would eventually correct itself. However, this approach proved to be ineffective, as the government failed to take decisive action to stimulate the economy and provide relief to the millions of people who were suffering from the effects of the depression.The impact of the Great Depression was felt across the globe, with many countries experiencing similar economic downturns. In the United States, the unemployment rate reached as high as 25%, and millions of people were forced to rely on soup kitchens and other forms of government assistance to survive. The effects of the depression were particularly severe for farmers, who faced falling crop prices and widespread foreclosures on their land.Despite the hardships of the Great Depression, there were somepositive outcomes that emerged from the crisis. The experience of the depression led to a greater understanding of the role of government in the economy, and it paved the way for the implementation of policies and programs designed to prevent similar economic downturns in the future. The New Deal, a series of domestic programs and reforms introduced by President Franklin D. Roosevelt, was a particularly significant response to the crisis, and it helped to stabilize the economy and provide relief to those in need.The Great Depression also had a significant impact on the social and political landscape of the time. In many countries, the economic hardship and social upheaval led to the rise of authoritarian and totalitarian regimes, as people sought strong leaders who could provide a sense of stability and security. In the United States, the depression also led to a greater awareness of the need for social welfare programs and the importance of government intervention in the economy.Overall, the Great Depression was a complex and multifaceted event that had a profound and lasting impact on the world. While the causes of the depression were varied and interconnected, the lack of effective government intervention and the excessive speculation in the stock market were two of the primary drivers of the crisis. The experience of the depression has shaped the way we think about the role of government in the economy and has led to the developmentof policies and programs designed to prevent similar economic downturns in the future.。
美国经济大萧条全英文
美国经济大萧条全英文The Great Depression in the United StatesThe Great Depression was one of the most severe economic downturns in the history of the United States, leaving a profound and lasting impact on the nation and its people It began in 1929 and lasted for over a decade, causing widespread unemployment, poverty, and social unrestThe stock market crash of 1929 was the trigger that set off the Great Depression On October 24, 1929, known as ＂Black Thursday,＂ stock prices plummeted, and panic selling ensued This event marked the beginning of a financial crisis that spread throughout the economy The excessive speculation and overvaluation of stocks in the preceding years had created an unstable economic bubble that burst with devastating consequences The effects of the Great Depression were felt in every aspect of American life Unemployment rates soared to unprecedented levels, with millions of people losing their jobs Factories closed, businesses failed, and banks collapsed Many families lost their savings and homes as foreclosures became common The agricultural sector was also severely affected, with falling crop prices and farm foreclosuresThe economic hardships led to a significant decline in consumer spending People had less money to buy goods and services, which further exacerbated the economic downturn Businesses struggled to stay afloat, and many were forced to cut production and lay off workers This vicious cycleof reduced spending and increased unemployment created a deep and prolonged recessionOne of the most significant social consequences of the Great Depression was the increase in poverty and homelessness Families struggled to put food on the table, and soup kitchens and breadlines became a common sightMany people were forced to live in shantytowns, known as ＂Hoovervilles,＂named after President Herbert Hoover, who was widely criticized for his perceived inadequate response to the crisisThe Great Depression also had a profound impact on the mental healthof the population The stress and uncertainty of unemployment, poverty, and financial hardship took a toll on people's emotional wellbeing Suicide rates increased, and families were often torn apart by the strain of economic deprivationThe government's response to the Great Depression was initially limited and ineffective President Hoover's policies focused on voluntary measures and relied on the private sector to solve the economic problems However, these approaches proved insufficient, and it was not until the election of Franklin D Roosevelt in 1933 that more aggressive and interventionist policies were implementedRoosevelt's New Deal programs aimed to provide relief, recovery, and reform Relief measures included direct assistance to the unemployed and those in need through programs such as the Civilian Conservation Corps and the Works Progress Administration Recovery efforts focused on stimulating economic growth through public works projects and financial reforms Thereform component aimed to prevent a similar economic crisis in the future by regulating the financial sector and establishing social safety netsThe New Deal had a significant impact on the course of the Great Depression It provided jobs and income to millions of Americans, helped stabilize the economy, and restored public confidence However, it was not until the onset of World War II that the United States fully emerged from the economic slump The war created a massive demand for goods and services, leading to full employment and a revitalization of the industrial sectorThe Great Depression taught valuable lessons about the importance of economic regulation, the role of government in times of crisis, and the need for a social safety net It also led to significant changes in economic and social policies that have shaped the United States to this dayIn conclusion, the Great Depression was a defining period in American history It brought about immense suffering and hardship but also spurred important reforms and changes that have had a lasting impact on the nation's economic and social fabric Understanding this period is crucial for appreciating the challenges and opportunities that arise in times of economic uncertainty and for shaping effective policies to prevent and mitigate future crises。
美国经济大萧条英文
美国经济大萧条英文The Great Depression: A Dark Period in American Economic HistoryIntroduction:The Great Depression was one of the most devastating economic crises in American history. It occurred during the 1930s and had a profound impact on the lives of millions of Americans. This article will explore the causes, consequences, and the government's response to the Great Depression.Causes of the Great Depression:1. Stock Market Crash: The stock market crash of 1929 is often cited as the trigger for the Great Depression. On October 29, 1929, known as Black Tuesday, stock prices plummeted, leading to a collapse in confidence among investors. This event marked the beginning of the economic downturn.2. Overproduction and Underconsumption: The 1920s saw an era of excess, with rapid industrialization and mass production of goods. However, many ordinary Americans did not have the purchasing power to keep up with the pace, resulting in a surplus of goods and a decline in demand.3. Credit Expansion and Speculation: During the 1920s, there was a rapid expansion of credit, enabling people to borrow more money. This encouraged speculation, particularly in the stock market and real estate. When the market crashed, many people were left with substantial debts and no means to repay them.Consequences of the Great Depression:1. Massive Unemployment: As businesses went bankrupt and factories shut down, millions of Americans lost their jobs. Unemployment rates skyrocketed, reaching nearly 25% at the height of the depression. Many families faced severe poverty and struggled to provide for their basic needs.2. Bank Failures: The economic downturn took a toll on the banking sector as well. Lack of confidence led to a wave of bank runs, where panicked customers withdrew their deposits. Consequently, many banks failed, wiping out the savings of countless individuals and exacerbating the economic crisis.3. Dust Bowl: The Great Depression coincided with a severe drought in the Midwest known as the Dust Bowl. Widespread soil erosion and dust storms destroyed crops and caused mass migration from rural farming areas to cities, adding to the already high levels of unemployment and poverty.Government Response:1. New Deal: In response to the Great Depression, President Franklin D. Roosevelt implemented the New Deal, a series of economic stimulus programs. It aimed to create jobs, provide relief to the poor, and reform the financial system. Programs such as the Works Progress Administration (WPA) and Social Security Administration (SSA) were established under the New Deal.2. Bank and Financial Reforms: The government implemented measures to stabilize the financial sector and restore public confidence. The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation (FDIC), which insured bank deposits and prevented future bank runs.3. Regulation and Expansion of Government Power: The Great Depression prompted a significant expansion of government intervention in the economy. The Securities and Exchange Commission (SEC) was established to regulate the stock market, and the Federal Reserve was given greater authority to manage monetary policy to prevent future economic crises.Conclusion:The Great Depression was a period of immense hardship and suffering for the American people. It resulted from a combination of factors, including the stock market crash, overproduction, and excessive credit expansion. The consequences of the Great Depression were far-reaching, leading to high unemployment rates, bank failures, and mass poverty. However, it also sparked significant government intervention and the implementation of programs that aimed to alleviate economic distress. The lessons learned from this dark period in American economic history continue to shape economic policies today.。
美国经济大萧条英文版
The Great Depression
Brief introduction Effects Causes Measures
Brief introduction
The Great Depression(1929-1933)，originated in U.S. history, the severe（严重的） economic crisis supposedly precipitated by the U.S. stock-market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to almost every country in the world.
--摘自威廉.曼彻斯 特·《光荣与梦想》
1932年6月，美国东北各名牌大学的应届毕业生步21974名老学长的后尘，也在
拼命找工作了。那时连在纽约百货公司开电梯也要有学士学位，而且对他们当中好源自些人说来，这已是最好的差使了
--摘自威廉.曼彻斯特·《光荣与梦想》
Causes:
It had been the immense disparity between the country’s productive power and the American people’s ability to consume.
Herbert Clark Hoover (赫伯特·克拉克·胡佛)
It was the longest, most widespread, and deepest depression of the 20th century.
The great depression information经济萧条
1) General introduction about the Great Depression. (Definition/Background Introduction)2) The cause and the development of the Great Depression. How do all the nations deal with the Great Depression.3) The political, economic, and the social influence of the Great Depression on the world nations.The Great DepressionThe Great Depression was an economic slump in North America,Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world.Though the . economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929.(During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929 )Besides ruining many thousands of individual investors,(个人投资者)this precipitous decline in the value of assets greatly strained banks and other financial institutions, particularly those holding stocks in their portfolios. Many banks were consequently forced into insolvency（破产）; （by 1933, 11,000 of the United States' 25,000 banks had failed） The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the downward spiral. The result was drastically falling output and drastically rising unemployment; (by 1932, . manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30 percent of the work force.)The Great Depression began in the United States but quickly turned into a worldwide economic slump owing to the special and intimate relationships that had been forged between the United States and European economies after World War I.The United States had emerged from the war as the major creditor and financier of postwar Europe, whose national economies had been greatly weakened by the war itself, by war debts, and, in the case of Germany and other defeated nations, by the need to pay war reparations.So once the American economy slumped and the flow of American investment credits to Europe dried up, prosperity tended to collapse there as well. The Depression hit hardest those nations that were most deeply indebted to the United States, ., Germany and Great Britain.In Germany, unemployment rose sharply beginning in late 1929, and by early 1932 it had reached 6 million workers, or 25 percent of the work force. Britain was less severely affected, but its industrial and export sectors remained seriously depressed until World War II. Many other countries had been affected by the slump by 1931.Almost all nations sought to protect their domestic production by imposing tariffs, raising existing ones, and setting quotas on foreign imports. The effect of these restrictive measures was to greatly reduce the volume of international trade（ by 1932 the total value of world trade had fallen by more than half as country after country took measures against the importation of foreign goods.）The Great Depression had important consequences in the political sphere.In the United States, economic distress led to the election of the Democrat Franklin D. Roosevelt to the presidency in late 1932. Roosevelt introduced a number of major changes in the structure of the American economy, using increased government regulation and massive public-works projects to promote a recovery.But despite this active intervention, mass unemployment and economic stagnation continued, though on a somewhat reduced scale, with about 15 percent of the work force still unemployed in 1939 at the outbreak of World War II. After that, unemployment dropped rapidly as American factories were flooded with orders from overseas for armaments and munitions. The depression ended completely soon after the United States' entry into World War II in 1941.In Europe, the Great Depression strengthened extremist forces and lowered the prestige of liberal democracy.In Germany,economic distres s directly contributed to Adolf Hitler's rise to power in 1933. The Nazis' public-works projects and their rapid expansion of munitions production ended the Depression there by 1936.At least in part, the Great Depression was caused by underlying weaknesses and imbalances within the . economy that had been obscured by the boom psychology and speculative euphoria of the 1920s. The Depressionexposed those weaknesses, as it did the inability of the nation's political and financial institutions to cope with the vicious downward economic cycle that had set in by 1930. Prior to the Great Depression, governments traditionally took little or no action in times of business downturn, relying instead on impersonal market forces to achieve the necessary economic correction. But market forces alone proved unable to achieve the desired recovery in the early years of the Great Depression, and this painful discovery eventually inspired some fundamental changes in the United States' economic structure. After the Great Depression, government action, whether in the form of taxation, industrial regulation, public works, social insurance, social-welfare services, or deficit spending, came to assume a principal role in ensuring economic stability in most industrial nations with market economies.The International DepressionThe Great Depression of 1929-33 was the most severe economic crisis of modern times. Millions of people lost their jobs, and many farmers and businesses were bankrupted. Industrialized nations and those supplying primary products (food and raw materials) were all affected in one way or another. In Germany the United States industrial output fell by about 50 per cent, and between 25 and 33 per cent of the industrial labour force was unemployed.The Depression was eventually to cause a complete turn-around in economic theory and government policy. In the 1920s governments and business people largely believed, as they had since the 19th century, that prosperity resulted from the least possible government intervention in the domestic economy, from open international relations with little trade discrimination, and from currencies that were fixed in value and readily convertible. Few people would continue to believe this in the 1930s.THE MAIN AREAS OF DEPRESSIONThe US economy had experienced rapid economic growth and financial excess in the late 1920s, and initially the economic downturn was seen as simply part of the boom-bust-boom cycle. Unexpectedly, however, output continued to fall for three and a half years, by which time half of thepopulation was in desperate circumstances (map1). It also became clear that there had been serious over-production in agriculture, leading to falling prices and a rising debt among farmers. At the same time there was a major banking crisis, including the "Wall Street Crash" in October 1929. The situation was aggravated by serious policy mistakes of the Federal Reserve Board, which led to a fall in money supply and further contraction of the economy.The economic situation in Germany (map2) was made worse by the enormous debt with which the country had been burdened following the First World War. It had been forced to borrow heavily in order to pay "reparations" to the victorious European powers, as demanded by the Treat of Versailles (1919), and also to pay for industrial reconstruction. When the American economy fell into depression, US banks recalled their loans, causing the German banking system to collapse.Countries that were dependent on the export of primary products, such as those in Latin America, were already suffering a depression in the late l920s. More efficient farming methods and technological changes meant that the supply of agricultural products was rising faster than demand, and prices were falling as a consequence. Initially, the governments of the producer countries stockpiled their products. but this depended on loans from the USA and Europe. When these were recalled, the stockpiles were released onto the market, causing prices to collapse and the income of the primary-producing countries to fall drastically (map3).NEW INTERVENTIONIST POLICIESThe Depression spread rapidly around the world because the responses made by governments were flawed. When faced with falling export earnings they overreacted and severely increased tariffs on imports, thus further reducing trade. Moreover, since deflation was the only policy supported by economic theory at the time, the initial response of every government was to cut their spending. As a result consumer demand fell even further. Deflationary policies were critically linked to exchange rates. Under the Gold Standard, which linked currencies to the value of gold, governments were committed to maintaining fixed exchange rates. However, during the Depression they were forced to keep interest rates high to persuade banks to buy and hold their currency. Since prices were falling, interest-rate repayments rose in real terms, making it too expensive for both businesses and individuals to borrow.The First World War had led to such political mistrust that international action to halt the Depression was impossible to achieve In1931 banks in the United States started to withdraw funds from Europe, leading to the selling of European currencies and the collapse of many European banks. At this point governments either introduced exchange control (as in Germany) or devalued the currency (as in Britain) to stop further runs. As a consequence of this action the gold standard collapsed (map 4).POLITICAL IMPLICATIONSThe Depression had profound political implications. In countries such as Germany and Japan, reaction to the Depression brought about the rise to power of militarist governments who adopted the regressive foreign policies that led to the Second World War. In countries such as the United States and Britain, government intervention ultimately resulted in the creation of welfare systems and the managed economies of the period following the Second World War.In the United States Roosevelt became President in 1933 and promised a "New Deal" under which the government would intervene to reduce unemployment by work-creation schemes such as street cleaning and the painting of post offices. Both agriculture and industry were supported by policies (which turned out to be mistaken) to restrict output and increase prices. The most durable legacy of the New Deal was the great public works projects such as the Hoover Dam and the introduction by the Tennessee Valley Authority of flood control, electric power, fertilizer, and even education to a depressed agricultural region in the south.The New Deal was not, in the main, an early example of economic management, and it did not lead to rapid recovery. Income per capita was no higher in 1939 than in 1929, although the government welfare and public works policies did benefit many of the most needy people. The big growth in the US economy was, in fact, due to rearmament.In Germany Hitler adopted policies that were more interventionist, developing a massive work-creation scheme that had largely eradicated unemployment by 1936. In the same year rearmament, paid for by government borrowing, started in earnest. In order to keep down inflation, consumption was restricted by rationing and trade controls. By 1939 the Germans Gross National Product was 51 per cent higher than in 1929 an increase due mainly to the manufacture of armaments and machinery.THE COLLAPSE OF WORLD TRADEThe German case is an extreme example of what happened virtually everywhere in the 1930s. The international economy broke up into trading blocs determined by political allegiances and the currency in which they traded. Trade between the blocs was limited, with world trade in 1939 still below its 1929 level. Although the global economy did eventually recover from the Depression, it was at considerable cost to international economic relations and to political stability。
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Economic crisisIn October 24, 1929, American black Thursday, crazy stock trend suddenly appeared in the New York stock exchange, trading a total of nearly 13000000 shares of stock, beyond more than 10 times of the normal daily trading volume. In financial speculation and bubble economy, the soared stock price now moved so that it can not keep up with the speed of price quotes. With many people in bankruptcy with a mountain of debt, even 8 people killing themselves on the day because of Dutch act of debt, the financial panic started. However, this was the largest , the longest, and the worst start of economic crisis in the history of capitalism. In the following four years, the capitalist world sank into the global crisis economically, socially and politically , has been a huge impact, precarious.On the Black Thursday, at 12 o’clock noon, a number of Wall Street financial giants in the Morgan Foundation Office held an emergency meeting, deciding to raise money to save the market. Two days later, the situation temporarily stabilized. But on 28th, Monday, with the wind coming again, 9,250,000 stocks sprung out such as the flood and the financial giants finally were unable to resist with wealth exhaustion, and they issued a statement at night: give up the rescue and panic is unstoppable to come. The next day, Tuesday, at 10 o’clock in the morning, with the stock market opening and the Gong ringing, large amounts of stock was thrown out, even at any price, but not many people wanted to buy with the chaotic scene. At the beginning of stock opening, 3000000 shares were thrown out, reaching more than 8000000 shares two hours later, and more than 12,000,000 stocks closed at one thirty. when shares reached16,410,000 , the stock market finally collapsed and the stock marketfell by12.82%. Hundreds of billions of dollars instantly became nothing and economic crisis has opened a prelude. Later on, the stock continually plunged with stock index 100 points in 1926, 145 points in November 1929 , 102 points in December 1930, and falling to 54 points in December 1931. Until 1933, the situation was extremely serious, even falling to 34 points in June, finally the index had lost 5/6. Nearly one hundred billion U.S. assets burst miraculously disappeared such as soap bubbles. From September in 1929 to January 1933, thirty kinds of stocks fell by 82.8%, from the average of $364.9 to $62.7. In the meanwhile, 20 kinds of railway stock from an average of $180 per share to $28.1, decreasing by 84.4%.The crisis heavily hit the United States firstly, thousands of factories and banks collapsed. There were 26400 companies and 934 banks broken In 1930. In 1931, 28300 companies and 1440 banks failed; In 1932, 31300 companies and 1453 banks failed; In 1933, 20300 companies and 1783 banks also failed. People rushed into banks in a panic to draw a large number of deposits, which caused a great loss of gold reserves as well as capital output sharply decreased nearly being stopped..In early 1933, all banks in the United States were out of business basically . Finance was just the nerve center of modern economy,and its paralysis inevitably led to the entire national economic havoc and the economy in the United States almost collapses, which resulted in continuous decline in America's GDP. In 1929, GDP was $103.1 billion, $55.6 billion in 1933. During the past three years GDP has decreased by half. Ten years later, it went back to $99.6 billion in 1940.What is more , industrial production of USA in July 1932, has fallen to the bottom, contrast in May 1925, plummeted 55.6%, steel fell by nearly 80%, fell by 87% in the machine tool manufacturing, auto industry has declined by 95%.With the economic crisis leading to a large number of unemployed people, people's life became seriously poor and the unemployed in the United States had more than 400 in 1930 to 8 million people in 1931, breaking through the ten million mark in 1932. In 1933, the most serious unemployment went up to 17million, which means nearly a third of the workers in the United States. From October 1930 to March 1931, there were 223000 people out of work among 690,000 workers and 5,000 households losing their homes within only 6 days just were unable to pay the mortgage. The unemployed fully in urban and rural, cold, hunger, and homeless, have been admitted to the Hoover cottage made of wood, sheet metal or paper boxes and so on. The humble dwelling were called Hoover cottage, because when Hoover once was run for President of the United States, he had promised the workers that they could have the chicken to eat and cars to drive.Once in America, about 34,000,000 people had no income, accounting for 28% of the total population, and even a large number of schools went bust. In 1932, only New York, at one time, had more than 30 students out of school and millions of people relied on charity with fear and despair throughout the crisis. This is so called the history of the great tragedy of America.In the early twentieth century, there were a variety of latent crisis factors in America economic prosperity such as large gap between the rich and the poor, wealth is concentrated in a few rich people, so that the majority of people in lower class lacked purchasing power because of poverty. In 1929, the rich in USA, accounting for 5% of the population of the country, had a personal collection of 1/3. At thesame time, the poor households with the annual income of less than $2000 were up to 60% of the whole families. In addition, the number of the pre-crisis unemployment reached about 2,000,000. Another important factor is the rampant speculation, such as speculation frenzy of the stock and real estate , forming the bubble economy. The New York Stock Exchange listed shares increased to from 443,000,000 shares in January 1925 to more than 1,000,000,000 shares of stock in October 1929 , with the face value higher with 3 to 20 times, some even up to 50 times. The the doubled prices and a serious departure from the actual value, the stock eventually fell off a serious cliff on the Black Thursday in 1929.。