During the last thirty years of the nineteenth century, the United States’ large farmer population was growing increasingly discontent with the state of political affairs. Deflation, debts, mortgage foreclosures, high tariffs, and unfair railroad freight rates contributed to the farmers’ unrest and desire for political reform. Farmers sought immediate and radical change through political means. The establishment of the Farmer’s Alliance and the Populist Party had drastic repercussions in national politics including the introduction of new ideas regarding monetary policy and government’s role in the economy. Before 1870, the global economy was performing poorly because of widespread crop failures in other countries.
Banks that loaned to the Confederate government could not collect their debts. Credit was incredibly hard to obtain. In 1873, economic panic led to the closure of some banks. Railroad companies went out of business, and the stock market collapsed. Basically all of the South’s resources were going to hell.
The Conservative Government left the Labour Government with large debts to the IMF and an increase in inflation in the economy. Although the Labour Government did not help this problem as they approached the IMF for another loan and its increase in debt meant that they had to decrease wages and increase prices, which then caused problems with the workers of the country. Due to a decrease in wages, many workers were unhappy and inflation led them to blame the government’s lack of control of the country’s finances for the financial problems that everybody faced. As inflation was rising, unemployment was increasing as in the four years of the Labour Government, unemployment rose by half as ‘key industries continued to shrink’. However, the government blamed the financial problems on the workers and especially the unions as strikes caused workforce to stop and the government went to the IMF, this however does not include Wilsons decision to devalue the pound as this was damaging on the economy because people were getting loess for their money and it disheartened a lot of the population.
WHY DID THE WALL STREET CRASH HAPPEN IN 1929? The Wall Street crash which happened on 29 October 1929 was one of the most depressing events in the history of America. This happened because people lost their wages b 60%, 14 million people were unemployed by 1933, banks went bust and also US trade slipped from $10 billion to $3 billion. The Wall Street crash happened due to some reasons: one reason was, the Americans were buying consumer goods on credit, especially cars and houses they did this because, they didn’t have enough money, and therefore if they get the money they will be able to pay. Another reason was that speculation was rife, because people believed the stock market was easy so 20 million Americans invested but only 1.5 million people had serious knowledge of the market.
Unit 6 terms & names pt.1 &2 Pr.5 Part 1 • Over production – Making too many products without enough consumers, one of the five causes of the great depression during the 1920’s. • Foreclosure – towards the end of WW1 due to the over production of food many farmers land was foreclosed (the process of taking possession of a mortgaged property) • Buying on credit – as a result of economic problems many Americans used credit to live beyond their means. (buying now and paying later) • Buying on margin – Borrowing money to pay for stocks • Black Tuesday – A day in 1929 when the stock market crashed (lost value) • Great depression – A global economic depression that spread throughout Europe, Asia, and Latin America. • Bank Failures
By September 1930, the economy of Germany was in deep depression as a result of the Wall Street Crash of November 1929 and the recall of the American loans that had propped it up. Unemployment had rocketed to 3.1 million (15.3%), and the Weimar politicians seemed incapable of solving the problems. In this situation the Nazis began to be seen as a way out, and their support rose. They gained 107 Reichstag seats (18.5% of the total). By July 1932, the economic depression that
The collapse of stock market happened because it had a weak foundation. In fact, it was dependent on borrowed money; banks would lend money to the population to buy shares in the market without making sure the borrowers were able to pay back. Moreover, facing the crisis over nine thousand banks were obliged to close, for they invested their client's savings in the stock market. Going through rough time financially, Americans are drastically forced to reduce their spending which lowered the amount of production; therefore, employers slashed the numbers of employees that caused the unemployment rate to rose from 4.2 in 1928 to 8.7 in 1930 and to 23.6 in 1932. In the middle of the crisis, several social classes experienced a harsh time.
Main causes of French revolution were poverty, hunger and malnutrition. Bad weather caused poor harvest for several years, and the French government did not help people. Immediately before the French revolution bread riots broke out. The reasons for differences of American and French revolutions were the leaders. In America, most of the leaders were, wealthy bourgeoisie, who owned vast manors and incredible wealth, so they were concerned about their wealth and their place in the society, they had much to
Also during the 19th century, they had a major economic decline. They had large debts in which they borrowed goods from other nations when the economy declined. Also this lead to inflation and corruption. The Ottoman Empire decided to expand but they overexpanded and had a weak central government. They couldn’t control the outskirts of the empire.
When the stock market crashed, it immediately affected the economy in the matter of a few hours. At this time President Herbert Hoover was in office, and he was overwhelmed with the tragic situation. During his Presidency, he did his best to fix the economy. However, things did not begin to get better until Franklin D. Roosevelt took office in 1932. Roosevelt immediately began reconstruction on the American economy.