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"happy 20s"
After the First World War, the economic hegemony moved to the United States (New York). In Europe the crisis was mainly strong in Germany, since it had to pay war reparations among other causes. Between France and Germany it seemed to be about to explode another conflict. In response, the French army occupied the Ruhr region, the richest area of the country. To solve the problem, the US created the Dawes Plan: quepermitiria Germany receive a loan which created a political detente between France. -
Plan Dawes
First economic treaty created by an international commission of experts chaired by economists Charles G. Dawes American banker in which a series of measures to try to reduce debts acquired Germany after the end of World War settled -
the origin of the crisis of 29
· Overproduction: Countries that were in the First World War had focused its economy on the production of war and other countries were supplemented in the international market. When the war ended, international countries returned to their usual production, generating surplus products.
· Speculation: The US economy was based on the stock market. Banks granted loans to companies and these falsified their accounts.
So the crisis hit the stock market. -
crack 29
also it is known as black Thursday was the largest ever known crisis that erupted on 24 October 1929. On this date the stock exchange on Wall Street in New York suffered a drop in prices. This caused the ruin of many investors, both large and small businessman shareholders, closing companies and banks. This led to unemployment to millions of citizens. This in many European countries moved -
consequences of the crisis and attempts at solution
increased unemployment, leading to reduced consumption and the collapse of companies that in principle were not affected by the crisis. loans facilitating the expansion of the crisis were reduced. US reduced its imports and its banks began to repatriate capital borrowed for the Dawes Plan. Roosevelt created a New Deal program lamado, which imposed greater state intervention in the economy. He invested in many public works, to create employment and increased social protection. -
the triumph of political extremism
The economic crisis caused the loss of public confidence in democracy. In this environment extremist parties gained support.
The workers and peasants increased their support for the Communist parties, while the middle class and the bourgeoisie began to support far-right parties. In almost all countries fascist parties were created. In this environment there was a wave of dictatorships. The most important case was Germany, where he won the Nazi regime, led by hitler
