Unemployment



Unemployment

Analysis

The economic crisis that spread throughout the world since October 1929 after the collapse of the New York Stock Exchange to Keynes, the greatest economic catastrophe of the modern world had as you know, dramatic consequences: unemployment figures ever known (fourteen million in the U.S., six million in Germany, three million in Britain and similar figures in many countries), banking and financial panic, generalized contraction in revenue and income, destruction of production and industrial structure, falling prices raw materials, collapse of international trade.

Greenwood describes the factors of depression on Hankinson in UK. Although the First World War brought the U.S. debt is 10 times greater than the debt that has been made during the Civil War, the U.S. economy after the war was on the rise. The country prospered. The reason was that during World War II to a country wide stream flowed foreign gold. And this trend continued later. President Coolidge continued only a domestic policy of his predecessor Harding, aimed at the high import tariffs while reducing income taxes. The national income rose from U.S. $ 32 billion in 1913 to 89.7 billion dollars in 1927. At the beginning of 20 th century the U.S. economy began to dominate the world economy. In the 20 years in the U.S. began widespread deployment of mass production, based on a conveyor technology. Such a large assembly-line production of durable goods gave an unprecedented growth in labor productivity. There was a high economic environment. There has been a boom in real estate and stock market euphoria. The Dow Jones tripled in the last 7 years. As it became profitable to speculate in stocks and real estate, then began a rapid increase in the shares of industrial and other enterprises. It appeared in the booming stock market. At the same time began to grow rapidly, land prices and real estate, especially in Florida. In 1924-27 years. happened to fall short of production, but the next year, the boom continued. Overall, from 1923 to 1929 was achieved stabilization of Western society. Dramatically decreased the intensity of political struggle. On the one hand it was quite obvious that by the beginning of 1928 the economy closer to a normal cyclical drop in business conditions, and there was no reason to assume that the crisis will be sharper and longer than usual, when the situation with prices, wages, interest rates, investment and capacity production leveled in a few months. The trouble was that until 1928 almost no one watched economic indicators, and since 1926 has started to shrink the volume of housing construction, falling sales of cars, a major consumer durables, reduced business investment. All eyes were glued to the stock market, which, contrary to the general recession in the second half of 1928 began a boom. Answers to the question why there is such a situation, ranging from romantic (the post-war mood, when he wanted to believe that all unhappiness is over) to psychological (a nation under the growing euphoria) and moral (the American nation has ...