history geography: the wall street crash and ints impact part 2: a global and total crisis

how was the global economy of the developed countries during the 1920s ?

finance and banking connected because of WWA. european banks were relying on us banks during ww1

what was the effect of the us bankrupt on french banks ?

when us banks collapsed they massively sold their european shares trigering a decline in the european shares value

what were the consequences of the decline in share value in europe ?

fall of european finance, and similar crisis in london, paris, amsterdam: bankrupt of many european banks: vicious circle of recession

how much was the france gdp afected in 1932 compared with 1928? canada ? germany ?

france reduced by 20%
canada 40%
germany 50%

what were the reactions of the european governments in order to limit the economic crisis ?

two contradictory measures :
-devaluated their currency: artificially reduce the value of a currency in order to stimulate exportation
-protectionnist measures: raising taxes on importation

consequences of the measures taken in order to limit the crisis

worsened the problem and contaminated other countries, international trade reduced everyhwhere, the gdp reduces and unemployment as well

what were the consequences of devaluation on the currencies ?

became unstable also because of inflation and speculation over currencies

what were the consequences of the reactions in order to save their economies on international trade agreements ?

were frozen or were completely violated by protectionist measures and devaluation

what were the social consequences of the crisis in europe in 1933 ?

boom in unemploment: france 25%, UK: 23%, norway: 31%
germany 30%
-all social reforms made since WW1 such as unemployment and retirement pensions prooved to be unificient
-problem of fonding, poverty
-slums arounf big cities

who helped people during the social crisis?

not the governement which was unable to face it
family
private charities made by churches
trade unions
political organizations

political association that helped people

many of them right wind and extreme right wind parties such as the " veterant associations"

what were the consequences of the social crisis on politics ?

rechaped the public opinions

what were the consequences of the social crisis on politics in germany ?

benefited to all political parties:
communist: the spartakists tried to tupple the governement , communist partie became the most important one in the parlement in 1920s
far right wind parties: benefited from fear of communism and economic situation ex: NDSAP(nazi) from bovaria developped all along the 1920s and won the elections in 1932

what were the consequences of the social crisis on politics in countries out of europe ?

affraid of communism too and turned in dictatorship because of the economic impact of the crisis: ex brazil 1930s getulio vargas became president until 1945

what were the consequences of the social crisis on politics in France?

fear of right wind parties called les leagues, small violent parties: "croix de feu", catholics and royalists
the front populaire: coallition of 3 main parties: "the communists", "the sfio" the "partie radical" who mannaged to win the elections

what was the global economic before 1929?

liberalism

why were governments and people reluctant to change their economic model and intervine in the economy ?

-2 prosperity periods: la belle éopque 1896-1914 before ww1
the roaring twenties/ les années folles after WW1
- inflation due to the crisis but also to state intervention

what were the economists opinion about the best reaction to face the crisis ?

against interventions, recomanded waiting and doing nothins
1 exeption: john meynard keynes

what is keynesianism ?

economic model invented by the british economis john meynard keynes: tempered liberalism based on:
- a liberal economy: wages, prices not defined by the state
-moderated: permanent state intervention with 2 objectives: preventing and solving the crisis, and reduce the economic and social inequalities

what does an economie based on keynesianism imply concretely ?

taxation
state iterventions to reduce poverty that includes: retirement/unemployment pensions,
state budjet in favor of education, health
control of the state by some strategic sectors through the creation of state monopolies: energy, transport, banking

keynesian ideas in different governments

-usa roosvelts new deal, but came to an end when prosperity came back
-europe way more interested by this ideas
france: equality values:front populaire first paid vacations, imposed private companies to increase the wages
-authoritarian regimes went further

what was the typical economic model of most of the authoritarian regimes

controled economies
ex: nazi:
-nationalized most of the bigest industrial companies: energy, transport, electricity
-two objectives: putting an end to the crisis, preparing the country for the war to come
quite the same measures regarding economie as democraties: -reduced unemployment with massive work plans: highway network, rearmement of the country