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Here is a picture of the front page of a newspaper as it breaks the news of the stock market crash. The day of October 29, 1929, would be forever known as "Black Tuesday."
7.4 D. ECN
Explain how different governments responded to economic crises after 1900.
Notorious gangster Al Capone attempts to help unemployed men with his soup kitchen "Big Al's Kitchen for the Needy." The kitchen provides three meals a day consisting of soup with meat, bread, coffee, and doughnuts, feeding about 3500 people daily at a cost of $300 per day.
HISTORICAL DEVELOPMENTS
HISTORICAL DEVELOPMENTS
Following World War I and the onset of the Great Depression, governments began to take a more active role in economic life. In the Soviet Union, the government controlled the national economy through the Five Year Plans, often implementing repressive policies, with negative repercussions for the population. In the Soviet Union, the government controlled the national economy through the Five Year Plans, often implementing repressive policies, with negative repercussions for the population.
Key Words:
Key Words:
Great Depression
Inflation
Fascism
Totalitarism
Keynesian Economics
The New Deal
Gulags
Spanish Civil War
NEP (Soviet Unoin)
USSR (Soviet Union)
Collectives
Five-Year Plan
End of WWI & the Impact on the Global Economy
The end of World War I led to profound economic changes worldwide. In the years after the war, industrial economies entered periods of recession (negative economic growth). Major economies shifted from mass production to win total war back to more consumer-based economies. By 1922, the economies of the allied powers had begun to expand again & entered a decade of wide-scale economic growth. Germany and the new countries formed out of the Austro-Hungarian Empire entered a decade of financial hardship.
Responses to the Great Depression
Responses to the Great Depression
The economic responses to the Great Depression were a significant expansion of the governments’ role within the economy. This resulted in more power governments overall, & in some instances, taking total control. Governments around the world developed a variety of responses to the Great Depression usually giving government a role in managing, structuring, & promoting economic growth. Some governments also began passing legislation promoting social welfare & raising living standards; while others advanced communism; & some choice fascism.
Actions & Outcomes Taken By States
States took a variety of actions in response to the depression.
COMMUNISM:
The Soviet Union (USSR)
COMMUNISM:
The Soviet Union (USSR)
Vladimir Lenin, as a young man studied the writings of Karl Marx which he grew to admire. However, even speaking of communism in Russia prior to 1916 was illegal and he was thrown in jail for doing so. Overtime, as WWI worsened, Lenin began a Marxist revolution in 1917 and by 1922 he had ousted the Tsar and Lenin established the new, communist government which he called the Soviet Union. However, in 1924 Lenin died and Stalin, Stalin, who had been General Secretary of the Communist Party, came to power. He started the 5 Year Plan, which He had factories built through the country and forced citizens to work in them. However, it was quickly revealed that Stalin was a brutal murderer. Throughout his rule he would order purges where millions of people he thought were against him would be killed or put into slave labor camps. Historians aren't sure how many people he had killed, but they estimate between 20 to 40 million.
In the Communist states of the Soviet Union and China, governments controlled their national economies often through repressive policies and with negative repercussions for their populations (Five Year Plans, Great Leap Forward).
Following WWI and the onset of the Great Depression, governments began to take a more active role in economic life. (New Deal, The Fascist Corporatist Economy, Popularist governments of Brazil, Mexico)
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