The economic crisis of 1929 and its consequences

The causes of the crisis

*The periodicity of crises: for economists at any period of growth in liberal economy succeeds a period of crisis
Industrial overproduction, industrial production had considerably increased since 1922 because of the strong demand of Europe ruined and the American encouraged by the sale on credit. However, in 1927, reconstructed Europe bought less than before and the markets shrinked all the more as competition between the capitalist powers increased.

*The financial imbalance due to high stock market speculation and the many bank loans, as households are ruined in the purchase of shares or bonds. In addition in September 1929 occurs a stock market spit in New York in the United States because

*the French franc thanks to the turnaround. Pointcarré stifles the dollar. The decline of the dollar leads to a climate of mistrust in business.

The results

From the economic point of view, the liberal capitalist economy hitherto characterized by the non-management of the State becomes a more or less directed economy. This directed economy is characterized by:

*The fixing of prices and stocks of products
*The devaluation of currencies
*Job creation for the unemployed
*The folding of national economies on itself (economic autarky)
*For those countries that had colonies developed protectionism
*![images (1).jpg]

(https://steemitimages.com/DQmfXhLbmAGnFK5FHszEnHKe2uwKJw7yd23AMnPG3qfquRT/images%20(1).jpg)While those who did not practically have dumping to conduct highly protected domestic markets