Long queues for free food on the streets, people who were destroyed in one stroke and locks on the banks… This is the scene of America which not only the most powerful country goes to America, but many countries of the world also get scared. Actually, we are talking about the 1929 economic recession in America, which broke America badly. This story is present today because once again there is an outcry in the US market. Billions of rupees of investors have become destined and unemployment crisis has increased.
Outcry and recession in America markets
Amid the threats of President Trump’s tariff, the American market, which was on a few months ago, has suddenly been hit. From Monday, the stock market saw a strong decline. Nedac Composite, S&P saw major losses. Tesla’s shares were also beaten. This decline has caused a loss of billions and its effect has been seen in the market around the world. Many experts are warning of recession. But the recession is a word that America shives on hearing it. There is a bitter story behind it …
It is a matter of 1929, when the destruction in America
In the autumn of the year 1928, about a century before today, America’s future President Herbert Hoover announced- ‘We are very close to the final victory over poverty for the first time in history in America today.’ Most American citizens agreed to him. People had never lived a good life before this. The unemployment rate was only 4 percent, that is, 96 people in every 100 had a source of earning.
But this happy moment was shocked when financial panic dominated after exactly one year. New York stock market broke, trades were closed, banks were destroyed, millionaires were wasted and ordinary citizens also lost their entire life savings. People lost their jobs and homes. In the next few years, one in every 4 American was unemployed. Then this economic crisis went beyond America and spread all over the world. It was the largest tragedy in the modern world, which we know as Greatness or Great Depression.
11 thousand banks closed
Stuck in this crisis, in the next 4 years, about 11 thousand banks of America i.e. half banks were closed. People started getting scared due to the use of the banks which were not closed. Industries and business came to a standstill, banks started removing. After the market crash, people were guessed as they were living in a fantasy, factories but there was no one to buy its product in the market, people’s jobs started going. The crop of farmers was ready but there was no one to buy goods. There was destruction everywhere. People had no money to eat food. In free food centers, long lines were started for the dubburot. In New York city, at least 82 thousand food was being given in a day. People came homeless and came on the streets.
Due to this recession, global industrial production declined by 45% during 1929 to 1932 and many countries of the world faced the crisis of goods supply for the next decade.
When did the economic recession in the world?
#1929 Greatness- This economic recession started in the US and it had an impact globally. The decline in the stock market, the decline in unemployment and industrial production was its main symptoms. This recession lasted till 1939.
#1973 oil crisis- This recession was due to an increase in oil prices by OPEC, an organization of oil exporting countries. As a result, economic crisis and high inflation were faced in many developed countries.
#2002 recession- The recession that came after the dot-com bubble in America and the 9/11 attack of 2001 kept harassing the world for many years. In this, companies of many countries were destroyed. During this period, unemployment increased in many countries and economic activities declined. The stock market also saw a huge decline. The Nasdaq index suffered a loss of about 80% from 2000 to 2002.
#2008 recession- This recession started with the crisis of the housing sector in America and it affected the whole world. Banks of many countries were destroyed. During this period, economic growth declined in many countries and unemployment increased.
#Corona Lockdown- 2019 Lockdown impressed the global economy severely affected due to the Covid-19 epidemic started from the end of. During this time, global GDP declined by 3%, which was higher than the previous crises. What is Trump and Kamla Harris’s economic policy?
