Great depression

Classified in Economy

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In the early 1920s, Europe suffered economic problems: causes:
-The material destruction during the WWI
-The end of the war economy: based on the military production
-Germany had to pay the reparations
-High levels of inflation
By the mid-1920s, Europe, Japan and the EE.UU had recovered: this period          was called "The Roaring Twenties": characteristics:
-New forms of entertainment:
   +Music: radios shows, cabarets and music halls appeared
   +Cinema: a new film industry developed, with famous Hollywood stars                    such as Greta Garbo and Charlie Chaplin emerging
   +Consumerism: people spent more money on cars, household appliances              and luxury goods
   +Investments: people speculated with shares
At the end of the 1920s, the EE.UU suffered an important economic crisis:           "The Great Depression": causes :
-Overproduction: American industry produced more goods than the                      population needed. When companies couldn´t sell their products, they            went to bankrupt and had to close 
-Falling consumption: when companies closed down, people lost their jobs            and stopped spending money
-"The Wall Street Crash": when the companies began to fail, investors                       panicked and tried to sell all of their shares: shares values fell                             dramatically and in October 1929, the New York stock market crash 
The effects of the crash soon spread to Europe:
-Consumption decreased
-Some banks collapsed
-Living standards declined dramatically

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