La Gran Depresión: La peor crisis del sistema capitalista
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Industry of consumer goods financed by loans
industry of consumer goods financed by loans. As a result of intense speculation, the New York Stock Exchange - the main indicator of the world economy - was overvalued.Immersed in a cycle by which shares were bought with the hope of reselling them at a higher price, much of the middle class in the US was involved in stock market investments.
The crash of the New York Stock Exchange
As a consequence, many firms had to close down and dismiss their workers.Before long, industrial production drastically declined. Unemployment affected almost all social classes. Many firms were ruined, but workers, employees and technicians were the most affected because unemployed workers did not collect any unemployment benefit.The repercussions of the economic crisis were quickly felt around the world because many countries depended on US loans that were cancelled as a result of its effects.
The worst crisis the capitalist system had ever endured
Great Depression. Because of its intensity, duration and reach, this was the worst crisis the capitalist system had ever endured.