How About The Great Depression /Gran Depresión

Páginas: 3 (708 palabras) Publicado: 18 de octubre de 2011
After World War I, most of the countries in the world had received a shock at economy, some for better and worse for others.
Apparently World War I carried an economical prosperity at all aspects;political economical, technological, etc… But it was only an illusion.
But what exactly was the Great depression?
Great Depression was a serious economical crisis around the world; it started about1929 and gets extended into World War II. It is considered the largest depression about time and the deepest to countries at XX century.
Many countries as France and Belgic was several affected asalso Russia, Italy and Austria. The wealth of these states suffered a dramatic decline, the fields, roads, ships, factories, machines were lost.
However war also benefited some countries as UnitedStates and Japan which have an important increase at their economy. US became the biggest creditor of European countries which weren’t able to produce their own market; it helped borrowing money to theallies.
US industries was well responding, but his workers didn’t have resources to get all what they produced, so people were more debt on loans because it wasn’t enough to meet their needs. So thisled many of entrepreneurs went to bankruptcy.
It caused several effects at many countries, mostly the ones which depend of industry, agriculture, rural areas and construction.
It exist many pointsof view, all of them based on economical thinking, but with different causes, for example:
Keynes argued that there were good reasons why the investment was not necessarily automatically increasedas a response to a fall in interest rates. Companies make investments on expectations profit. Therefore, if an expected drop in consumption in the long term, trend analysis companies would lowerexpectations of future sales, so they would want to invest n increasing future production, even if interest rates low capital were cheaper.
Roosevelt who was United State President at this time; took...
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