La gran depresion en Ingles.

The big depression

The Great Depression, also known as the crisis of 29, was a global economic crisis that lasted during the 1930s, in the years before World War II. Its duration depends on the countries to be analyzed, but in the majority began around 1929 and extended until the end of the thirties or early forties. It was the longest, deepest depression in the world and the one that affected the largest number of countries in the 20th century. In the 21st century, it has been used as a paradigm of the extent to which a serious deterioration of the world economy can occur.

The so-called Great Depression originated in the United States, after the stock market crash of October 29, 1929 (known as the 29th or Black Martes crash, although five days earlier, on October 24, had already occurred on Thursday Black), and quickly spread to almost every country in the world.

Depression had a devastating effect on almost all countries, rich and poor, where insecurity and misery spread like an epidemic, so that national income, tax revenues, business profits and prices fell. International trade fell by 50-66%. Unemployment in the United States increased to 25 percent, and in some countries reached 33 percent. [1] Cities around the world were severely affected, especially those dependent on heavy industry, and the construction industry stopped practically in many areas. Agriculture and rural areas suffered a fall in crop prices, which reached approximately 60 percent. [2] [3] [4] Given the fall in demand, areas dependent on primary sector industries, with few alternative sources of employment, were the most disadvantaged. [5]

Countries began to recover progressively in the mid-1930s, but their negative effects in many areas lasted until the beginning of World War II. The election of Franklin Delano Roosevelt as president and the establishment of the New Deal in 1932 marked the beginning of the end of the Great Depression in the United States. However, in Germany, the disappearance of foreign finance in the early 1930s and the increase in economic difficulties led to the emergence of National Socialism and Adolf Hitler's arrival in power.

The crisis originated in the United States, following the fall of the Wall Street stock market in 1929 (known as Black Tuesday, although five days earlier, on October 24, Black Thursday had already taken place), and quickly Extended to almost every country in the world.

The situation of the rise, denominated there Big Bull Market, rested thus on an extremely fragile basis. The whole system collapsed in October 1929, and within a few days - in a matter of hours, even - the contributions lost everything they had gained for months or, rather, for years. The small speculators were ruined and had to sell at enormous losses, and when the panic spread the great capitalists also found themselves in difficulty.

On October 23, 1929, the contributions recorded an average loss of 18 to 20 points, and passed from hand to hand about six million titles; The next day, further drop in prices, between 20 and 30 points, and even 30 to 40 for large companies.

At such a critical juncture, the country's first banks and leading brokers tried to save the business and raised $ 240 million to support the quotations through massive purchases, and in that day changed 13 million shares.

Such a desperate attempt produced only momentary results; On Monday, October 28, there was a further decline of 30 to 50 points, and the next day - which went down in history as "Black Tuesday" - was the darkest day on Wall Street. The panic was absolute: in a few hours, sixteen million and a half shares were sold at a loss at an average of 40 percent.

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