英美概况(美国)6, the Great depression and New Deal.pptVIP

The Great Depression and New Deal the 1920’s the “boom” or prosperity and isolationism the 1930’s the Great Depression and the New deal”. The False Prosperity in the 1920’s radios, vaccum cleaners, washing-machines, cars, etc bought and sold “stocks By 1930, the U.S. invested abroad 16000 million dollars and it had the lion’s share of world trade. The Great Depression of 1929-1933 the New York stock exchange crash on October 24, 1929 a decline in prices of securities might be expected. Stockholders began to sell large blocks of stock and this triggered a wild scramble on the floor of the New York Stock Exchange. The bear market started a rapid decline of security values. The rich people lost their confidence in the security of the bank and withdrew their money. With so much money withdrawn from circulation, banks had to close their doors. Other people who had kept their life’s savings in those banks were left with nothing. People without money could buy nothing from shops, so many shops shut down too. All this inevitably affected companies, reducing their sales, their production and their payrolls. Millions of unemployed people walked along the streets in a hopeless search for work. Agriculture was hit even harder, for the products found no market. Factories curtailed their purchase of farm products for industrial purpose. Countless poor workers were compelled to reduce their consumption of food. The prices of farm products fell to such a low level that farmers just refused to harvest their ripe crops, because the market price could hardly cover the cost of transportation. Cattle were killed in large numbers. Great quantities of milk were poured into the rivers. Plenty of “extra” goods and products were simply destroyed while the people went hungry and unemployed. The core of the problem the country’s productive power the American people’s ability to consume the output of American industry beyond the purchasing capacity of