Economic: Wall Street crash and the Great Depression

1.

In 1928 some signs that show that the economy was in danger began to appear. This could be seen because the earnings of the people didn’t grow as much as they fought and it wasn’t enough to make the consumption grow either.

The stores were full of merchandise but they could not be sold, and this caused the fire of a lot of factory workers.

No one actually noticed the situation that was growing until October of 1929 when the Wall Street Stock Market crashed. The crisis broke and it was inevitable, it extended through the Banks system, to the industry, and to economic activities such as trade. And its consequences were felt and suffered by many countries around the world and remained until the World War II.

The crash of the stock market, produced a Thursday 24 of October, brought the ruin of many companies and investors, many of whom had bought many actions that now were unable to pay for.

This crisis made the people panic, and everyone who had money in Banks, retired it as fast as possible.
The common people living in the country filled with debts, and approximately 600 American Banks broke.
From that moment, a period called the Great Depression started.

In United States, the stores accumulated with stocks that couldn’t be sold, this caused that the standstill of the investments and many companies had to be closed.

The Depression also affected the agriculture, many farmers ruined because of the falling of prices. Finally, as a quickly solution they had to sold their lands at lower prices of what they really cost so they could pay they’re debts.

At the end, poverty not only reached the farmers and workers, it also extended to factory and company workers and professionals.

Europe’s economy depended a lot in the United States; this made the Great Depression expanded for every part of the world, especially Europe.

The fall of prices in America affected in a lot of industries around the world that had bigger or superior prices of the ones in the States, but with the crisis they could no longer compete with other companies or industries, so they had to reduce their exportations.

Also, the decrease of the imports in the United States made the exports of other countries stopped and because of this the Global trade decreased.

The United States tried to charge all the Money invested in other countries. This made an special repercussion in Germany because this one had asked the States for many because they were forced to pay in cash all the reparations caused in the World War I, and this situations made Germany’s debts get bigger and bigger.
The World wide crisis also affected countries as Austria, Great Britain, France, Latin America, the south of Asia, Australia and many other countries.