The Great Depression Timeline

Borrowing

Loans and Investment

Roaring 20's

End of WWI

The Great Depression

Frank Rivera 8C

Investment Era Development

1918

1920

1920

1922

1929

Recovery

Nazi response

Following years

Black Thursday

Start of WWII

1929

1932

1934

1939

1939

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.

Roaring 20's

Ford Model T, a cheap model that popularized chain production

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.

Recovery

American Women producing weapons for WWII

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.

Loans and Investment

New York Stock Exchange building back in the 1920s

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.

Investment Era development

Dow Jones continued high although things weren't going well

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.

Black Thursday

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.

Start of WWII

Adolf Hitler ready to invade Poland

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.

Borrowing

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.

Following years

Iconic picture of kids during the Great Depression

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.

End of WWI

Newspaper from November 12, 1918

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.

Nazi response

Adold Hitler rises to power promising to solve the german depression