USA 1929 The Great Depression Explained:
Vicky, will you post this topic or not?
In 1929, America faced a big issue. Many of you asked about this 1929 Great Depression. There are others who ask, Will learning the History serve us?
If you `watch closely, events which happened 30 or 40 years back will happen now. It’s like a cycle which repeats itself. If you know the history then you will be able to predict the events which may happen in the future.
Are you saying that the event which happened in 1929 will happen in 2019?
Today’s topic will be interesting. We will learn a lot.
Beloved Tamil People. Greetings from Tamil Pokkisham.
If you read American History. One president will be very popular. The President who comes next cannot shine as the previous one.
In1933, If you visit an American home. You call him and ask him some coffee powder. He will give you the coffee powder. Again if you ask him some sugar, he will say “Get Lost Hoover”.
Whos this hoover?
Hoover is an American president. The name Hoover was used badly.
Why did the name use like this?
We should travel back to Woodrow Wilson. He was the president during world war1. He was the one who wanted America to remain neutral during the war. He started Banks and industries to make America into a Super Power. The president after Woodrow was Warren g Harding from 1921. The American people hated Harding. The Govt was corrupted, he created confusing terms like Inner and outer circle. He was considered the most corrupted president. He was president from 1921 to 1923. Next comes Calvin Coolidge as president. During his presidency, America rose to newer heights. During his time, the share market is sky-high from 1923 to 1928.
In 2019 many Indians don’t know what Stock Market is and how to invest in it.
How did Americans in the 1920’s invest in Stock market?
If an American earns 100USD, he will immediately invest it in the share market. There is a reason behind this. Everybody in America is having a lot of money. After World war 1 America has done many things to earn money. Many had huge sums of money and some had huge amounts. So the people after spending saved it in investment.
The Illuminati or the Reserve back which wants to control the flow of cash are thinking that many are having an excessive amount of money. People will receive interest or profits from share market. So they will not take a loan from banks. If a loan is taken only Banks will survive. So these guys wanted to put a stop to this.
So they leak the wrong information to the public. American people also believing the fake news buy these shares. India is now in Economic depression. But everybody said that India is still growing rapidly two years back. So if there is a rapid growth it is the start of an economic depression.
So from 1920 to 1925, America was the wealthiest country in the world. So the American economy was high. In 1928 it decreased drastically. Many people bought shares.
Let’s discuss this Stock market.
For ex: There is a company called A. That company’s share price is rs10. We will buy 10 shares for rs100. So after two years, the shares rise to rs20. So the profit for us is rs100 so total rs200. I will recommend my friend to invest in Company A which has a share value of Rs20 now. Ill tell him that after two years the shares will be rs40. We will imagine that this company exists.
Similar to this new companies were started in the 1920’s. Some companies names are said that their shares will increase. The American people now have a lot of money. We also need to learn about how the money got here. We will discuss that in another post.
If you think that North Indians are taking the jobs in Tamilnadu when Un-employment is high.
How are they getting jobs?
If you have this question, the answer will be in the next post.
So the American people have a lot of money and they invest in shares. The American president was Collidge. Many ask the president to be re-elected. The American people invite him but Coolidge declines the offer. The next president was Herbert Hoover.
So in 1929, there were some issues. Share prices drop drastically. So let’s go back to that example. Rs10 per share for Company A. But now the share price of A is rs2. That means the loss is rs8. So I have bought 10 shares so the loss is rs80. So I will sell the shares even though that will end up in a loss. Many may wait for the prices to rise.
So in 1929, the Share prices dropped. All share prices for all companies drop. Nearly 1.5 crore share value has dropped. Small companies or branch companies went bankrupt. Everybody has to suffer this drop. Everybody from the Middle class to high class suffered from this loss. This was closely watched by the Reserve bank. People should go into debts that their aim. Their ultimate aim was to make the people go into debts.
People queue up to sell their shares in 1929 in America. Please search for Black Tuesday and Black Thursday. People now leave shares and go back to having money. So from 1929 to 1933, nearly 6000 banks went bankrupt.
People didn’t have money, now they have to work to earn money. So if they want money they will have to lend it from Federal bank. So in the coming years, the stocks crash. So Hoover was held accountable by the American people.
This started when Coolidge was president, but the effect was felt in 1929. Hoover felt miserable about being an American president. America Stock market has crashed.
Did it impact the world stage?
Yes, it did. Nearly ⅓ of the business didn’t happen in the world. The American people were the ones who suffered the most. In 1929, there were shops which gave free Chicken soups. If the govt didn’t give this free soup many could have lost their lives. The govt gave free chicken soup and bread.
So for nearly ten years, this continued from 1929 to 1939. There was another issue also sand storms. People were unable to do agriculture as these Sand Storms were devastating. So people were suffering greatly, so the Govt receives money from the Federal bank.
So you did receive some profits from the stock market. But now the people are indebted to the bank. So you will invest in the stocks with your savings, but now your savings have gone.
This method is used in India now. We will discuss in detail in the next post.
How did America escape from this depression?
What impact did it have in American society?
How America became a Rich country?
Many interesting facts will be shared in the next post.
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