The Twenty Happy Years in the U.S.
Big Growth and Industrial Practices (1920s)
- Intense industrial expansion: Export production and active economic investment practices.
- Dense development of industries (electrical, chemical), especially the automotive sector.
- Generalization of mass production, thanks to new work systems like Fordism and Taylorism.
- Massive purchase of new systems fueled by advertising.
Situation in Europe
- France and Germany saw industrial production increase due to reconstruction efforts.
- France based its growth on new sectors (electricity, automobiles).
- Germany grew using funds received from the U.S. and U.K., often incurring significant borrowing.
- In Britain, industrial stagnation persisted due to the high value of the pound, which hindered exports.
Imbalance of Growth
- Crisis in traditional economic sectors, affecting both industry and agriculture.
- Decrease in the population's capacity for consumption; industrial stocks increased.
- Industrial and trade stagnation resulted from reduced consumption and protectionism.
- Monetary instability and the failure of the gold standard system.
- Decline in productive investment favoring speculative ventures.
The Crash of 1929 and the Great Depression
Causes
- Crisis in traditional sectors (steel, textile) and agriculture, stemming from overproduction during the 1920s.
- Diminished consumption capacity starting in 1927 due to construction slowdowns.
- Monetary sector crisis and market saturation.
- Speculative bubble in the stock market, showing a disconnect between asset values and the real situation of companies.
- Widespread use of credit to purchase overvalued shares, creating grave financial danger.
The "Black Thursday"
- Constant decrease in share values began in the spring of 1929.
- On October 24, 1929, the decline in stock values caused panic among investors, leading to bulk selling of shares and market collapse.
- This initiated a dynamic of losses that extended until 1933.
The "Great" Depression (Until 1933)
- The stock market collapse dragged the entire U.S. economy down.
- Destruction of savings for millions of people; sharp decrease in consumption and investment.
- Many banks failed due to credit collapse, illegal withdrawal of funds due to mass panic, and investor ruin.
- Industrial crisis: Demand fell, stocks accumulated, prices dropped, and unemployment increased severely.
- Widespread misery due to lack of social safety nets.
- Severe price deflation caused the displacement of approximately 1.5 million people.
