The economic crisis of 1929- 1933 is unprecedented in the capitalist world.

During the period of 1924- 1929, the capitalist world experienced a brief economic prosperity. From 65438 to 0929, the economic crisis first broke out in the United States, and then swept the whole capitalist world, forming an unprecedented and longest-lasting world economic crisis.

1929 causes of economic crisis

1. Periodic overproduction in the capitalist production process. That is, the socialization trend of means of production and the privatization and demolition of means of production. This is the fundamental contradiction of capitalist society. (This is the root cause)

2. The subprime mortgage crisis in America is the direct cause. (The subprime mortgage crisis, in layman's terms, means that people borrow money from banks and spend more than they can afford, leading to bank failures and financial collapse. )

3. Because people consume in advance, the market is falsely prosperous. The expansion of production by enterprises leads people to speculate in the stock market, which in turn leads to the stock market crash.

It is manifested in a large backlog of products, the closure of enterprises, the sharp drop in output, the sharp increase in the number of unemployed people, the serious damage to credit relations, and the chaos and paralysis of the whole social and economic life.

The outbreak rule is 1825. After the economic crisis first broke out in Britain, it reappeared every 8~ 10 years.

1929- 1933 characteristics of economic crisis

(1) The scope is particularly wide: it affects the whole capitalist world and all production departments;

② A long time: from 1929- 1933, a total of five years;

③ Extremely destructive: the production of the whole capitalist world has dropped by more than 1.3, and the total trade volume has decreased by 2.3.

process

In the 1920s, there was a speculative frenzy in the American stock market. "Whoever wants to get rich will buy stocks" has become a mantra. People are possessed to buy stocks and dream of becoming millionaires overnight. Crazy stock speculation eventually led to an economic disaster. 192910/0 On 24th, the share price of new york Stock Exchange fell like an avalanche, people sold their shares hysterically, and the whole trading hall echoed with shouts of despair. This day became a terrible "Black Thursday" and triggered the American economic crisis. However, this is only the beginning of disaster. On the 29th, the share price of the exchange plunged again. More than160,000 stocks were sold in one day, and the average price of 50 major stocks fell by nearly 40%. Overnight, the "prosperity" scene vanished, and a comprehensive financial crisis followed: a large number of banks closed down, enterprises went bankrupt, the market was depressed, and the output dropped sharply; Unemployment has soared and people's living standards have plummeted; The price of agricultural products has fallen, and many people are on the verge of bankruptcy. An unprecedented economic crisis finally broke out, and the Great Depression in American history came.

In 1933, the industrial production of the whole capitalist world dropped by 40%, the industrial output of all countries fell back to the level at the end of 19, and the total trade volume of the capitalist world fell by two-thirds.

A total of 290,000 enterprises in the United States, Germany, France and Britain went bankrupt. The number of unemployed people in the capitalist world has reached more than 30 million, and the number of unemployed people in the United States has reached more than170,000. Millions of small farmers went bankrupt and the unemployed were displaced. The inherent contradiction of the economic crisis to the capitalist system has caused political turmoil in capitalist countries. The economic crisis has also intensified the contradictions among capitalist countries, leading to a series of tariff war, dumping wars and currency wars.

Solution-Roosevelt's New Deal

The economic crisis hit the American capitalist system. Franklin roosevelt (1933). Roosevelt (1882- 1945) immediately took the "New Deal" to deal with the economic crisis and called on the American people to support his "bold experiment".

The main contents of the "New Deal" are: rectifying the financial industry, restoring bank credit, depreciating the dollar and stimulating exports; Restore industry, strengthen the state's regulation and control of industrial production, and prevent blind competition from causing overproduction; Adjust agriculture, reduce agricultural output, stabilize agricultural product prices and maintain agricultural production; Establish public works to reduce unemployment and expand consumer demand; Carry out social relief and stabilize social order.

The National Industrial Recovery Law is the core and foundation of the whole New Deal. The law stipulates the production scale, price level, market distribution, wage level and working hours of each enterprise, stipulates that workers have the right to collective bargaining, and stipulates the longest working hours that capitalists must accept and the amount of wages payable.

In order to ensure the implementation of the National Industrial Recovery Law, the government launched the "Blue Eagle Movement" marked by the sacred bird Blue Eagle worshipped by Indians, and all law-abiding enterprises hung the Blue Eagle logo. A few weeks later, 250,000 employers signed laws and regulations with the government. They marked their products with the Blue Eagle to show that they obeyed the law. Time magazine also printed the Blue Eagle on the cover of each issue. ]

The "New Deal" is a self-adjustment of the American capitalist world, which started the large-scale intervention of the bourgeois government in economic life, further improved the monopoly degree of American state capitalism, and was a milestone in the history of capitalist development. The "New Deal" has achieved good results and enabled the United States to survive the crisis.

The role of Roosevelt's New Deal

The New Deal has achieved remarkable results. The American economy has slowly recovered and people's lives have improved; The capitalist system has been adjusted, consolidated and developed; The macro-control and management of the economy in capitalist countries have been strengthened; The power of the American federal government has been significantly enhanced. The New Deal is of great significance in the history of capitalist development in the United States and the world.

However, the New Deal did not completely eliminate the inherent contradictions of capitalism, because the root causes of the economic crisis still exist.

Effect and influence:

The American economy rebounded and the number of unemployed people dropped sharply.

Capitalist countries have strengthened macro-control and management of their economies.

The power of the American federal government has been significantly enhanced.

The capitalist system has been adjusted, consolidated and developed.

He boldly drew lessons from the advantages of socialism, saved the capitalist crisis by means of reform and avoided fascism coming to power.

The New Deal is of great significance in the history of capitalist development in the United States and the world.

1929- 1933 the impact of the economic crisis

1929- 1933 the capitalist world economic crisis is the most serious economic crisis in the history of capitalism, which has caused crises in the industrial, agricultural, commercial and financial sectors. Compared with 1929, 1933 reduced the production of the capitalist world by more than 1\3 and the total trade volume by 2. The economic crisis has dealt a heavy blow to the capitalist world and stimulated the internal contradictions of the capitalist system. The economic crisis triggered a political crisis, which made the internal political situation of capitalist countries turbulent, the contradictions between countries further intensified, and the tension in the world intensified.