The Great Depression Timeline

1929

1922

1920

1920

1918

Investment Era Development

Frank Rivera 8C

The Great Depression

End of WWI

Roaring 20's

Loans and Investment

Borrowing

1939

1939

1934

1932

1929

Start of WWII

Black Thursday

Following years

Nazi response

Recovery

Roaring 20's

New technologies as the Ford Model T, the washing machine or the vacuum cleaner appeared, and people wanted to buy them. This technological developments impulsed the americans to a period of economic prosperity and cultural change, which were known as the roaring 20's.

Recovery

The preparation for WWII ironically reversed the Great Depression instead of aggravating it. People got jobs from war needs, such as weapon assembly and production. Laws were later established and institutions like the Federal Deposit Indurance Corporation and the Securities Exchange Comission were created to prevent another depression.

Loans and Investment

As economy seemed not to just be stable, por prosper, banks start giving loans to people so they could buy the lastest technology. People got greater wages and searched for a way of getting even more rich. So people started to invest. The stock market became very popular activity, everyone, from the shoeshines to the rich started investing.

Investment Era development

Dow Jones has doubled, companies now have problems to keep up their stock price and justifying it. Wages fall, and interests grow. Production has slowed, as well as demand has fallen, and that's very bad, but people keeped investing as is nothing was happening. But anyways, the market was giving signals of its downfall, and was creating uncertainty between the investors.

Black Thursday

On October 24, 1929. Investor's uncertainty collapseded and 12.9 million shares were sold, leading to a downfall of the market of 11%. This marked the begginig of the Great Depression. This was followed by the Black Tuesday, in which the market fell 12% and 16.4 million shares were sold. The marked lost $14 billion dollars in one day.

Start of WWII

The Nazi party, which gained power from the Great Depression, ended up starting WWII with the invasion of Poland. Other fascist regimes, which were established in search of a solution to european depression, participated in WWII. This demonstrated the fragility of the marked against fear, greed and speculation. The WWII may have helped solving a world problem, but creating a worse one.

Borrowing

Investment rapidly grew and people put their life-savings into whatever is safe in the stock market. People started investing not only their savings, but also loans that they took from the band. And as the banks start collecctiong more public interest, they start running out of liquidity in their capital. So they start 'borrowing' capital from their clients without anybody noticing.

Following years

For the next three years, the market fell 90%, peopled who had borrowed to their banks only got 10% of their investment back. Stocks were by soil. Even people who didn't invert were affected because of holding their money in the bank. The US gets up to 24.9%, the highest ever. Other countries apart form the US were also affected, because the importance of the US as a commercial partner, because of the use gold standard and their trade tariffs. Their colonies were linked to each country's depression, which varied among Europe but hit hard particulary in Germany.

End of WWI

The end of WWI left the United States as one of the winners, and it started recovering from war. The troops came back, industialization continued, delayed structural proyects were resumed, postal economy seemed to grew and women were getting involved in work. The US became the greatest world power.

Nazi response

The Great Depression not only caused problems in the US. Because of globalization, the whole world was suffering the consecuences. This helped establish regimes that tried to solve the crisis.Specifically, the Nazi party of Adolf Hitler gained power and influence from the german discontent, and raised Hitler to the power.