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    Revision as of 07:51, 18 January 2023 by Can't live without rice (talk | contribs) (decreased the insane size of the cross † icon)
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    Great Depression was the worst economic depression, ever. It affected Germany-icon.png Germanyball's economy the worst. Many Blank-icon.png countryballs were affected by this event. The only countries that were less affected were those that had a separate economic network not connected to the global International-icon.png international Capitalism-icon (ideologyballs).png capitalist economy; countries like this were Fascist Italy-icon.png Fascist Italy and the Stalin2-icon.png Stalinist Soviet-icon.png Soviet Union. The recession started in October of 1929 in Money-icon.png Wall Street, New York-icon.png New Yorkball, USA-icon.png USAball, and ended in September of 1939, when the nations involved in World War II conscripted their populations, still with enormous amounts of unemployment ending the last effects of the recession.

    History[edit | edit source]

    Background[edit | edit source]

    In the year 1918 the last standing member of the Central Powers, German Empire-icon (2).png Germany, surrendered to the Entente, marking the end of World War I. This gave start to the peace negotiations, peace negotiations that would change forever the history of humanity. USA-icon.png USAball started an initciative to prevent a war like this from ever happening again, "The League of Nations-icon.png League of Nations", an organizationball that would try to dissolve diplomatically disputes between countryballs and it would be dissolved in 1920 at Switzerland-icon.png Ginebra. France-icon.png Franceball and Belgium-icon.png Belgiumball had been devastated by World War I, didn't even try to negotiate a moderate solution with the German Empire-icon (2).png Germans. After the humiliating treaties imposed by the allies to the Central Powers the Germany-icon.png German population started to get angry, which would defeneatly not result in Nazi Germany-icon (division).png unpleasnt results...

    When all the allied soldiers returned to their homes, the rapid change from a War Economy to a Civil Economy caused sequels to some countryballs. The Germany-icon.png Weimar Republicball in order to pay their debt with France-icon.png Franceball and UK-icon.png UKball came up with the amazing idea of printing Money-icon.png money. But printing Money-icon.png money doesn't make you richer but instead make the value of your currency less. This phenomenon is called inflation. And in 1920 one USA-icon.png US Dollar went from being worth one Germany-icon.png German Mark to being worth 3 Million Germany-icon.png German Marks in 1923. To put it into perspective, in 1920 if you bought a Germany-icon.png German Sausage for 1 mark, now in 1923 it would cost you 3 Million. The Germany-icon.png German economy had collapsed.

    Now that the Germany-icon.png Weimar Republicball couldn't pay the France-icon.png French and the Belgium-icon.png Belgians, they occupied the Rhineland to exploit their  Money-icon.png economic resources as a Money-icon.png payment method. During this occupation many Germany-icon.png German miners were †-icon.png assassinated by France-icon (soldier 1916).png french soldiers which this would make even more angry the already furious Germany-icon.png German population.

    In the other side of the Atlantic Ocean, the USA-icon.png Americans were living the high life due to that they had been Money-icon.png selling weapons to EU-icon.png European countries during World War I, this period was known as the "Happy 20's" in the USA-icon.png US. There was jazz, music, cartoons, cinema and things were going so well that the middle class started to invest in market actions. This worked the following way: The typical [[File: Hat-icon.png]] "Joe" goes to a Money-icon.png bank and asks for a Money-icon.png loan promising that he will get his Money-icon.png money back as he would Money-icon.png invest it in the Money-icon.png market. Now [[File: Hat-icon.png]] "Joe" invests in his favourite company, "Obama-icon.png Obama Industries I.N.C". As more and more people buy actions, the action that [[File: Hat-icon.png]] "Joe" bought now is worth 10 USA-icon.png US Dollars more. He sells those actions and uses the 10 extra dollars to Money-icon.png buy some nice flowers for his wife. This was the start of the USA-icon.png American Stock Exchange.

    In 1924 Vice-president of the USA-icon.png United States of America, USA-icon.png "Charles Dawes" started to help economically the Weimar Republic Germany-icon.png with the well known USA-icon.png "Dawes Plan". The objective of this plan was to give Money-icon.png loans to Germany-icon.png Germany so that they could pay their Money-icon.png debt with the UK-icon.png UK and France-icon.png France, which would give back the loan to the USA-icon.png US while paying their Money-icon.png debt, and as long as nothing changed the countries in this endless circle would get Money-icon.png richer. In 1924 the Germany-icon.png Weimar Republicball was allowed in the League of Nations-icon.png League of Nations, err I mean Society of Nations, and the allies started to respect the Germany-icon.png Weimar Republicball as a Country as part of the "Locarlo Agreedments". All of this gave USA-icon.png "Charles Dawes" the Sweden-icon.png Nobel Price in 1925.

    Crash[edit | edit source]

    Until the 24th of October everything was going good in Money-icon.png Wall Street, until the Money-icon.png actions were so high that Blank-icon.png nobody could afford to buy them, not even with bank loans. And everyone started to sell their actions. And prices suddently fell really fastly in what's known today as the "Crack of the 29". The USA-icon.png wall street market had collapsed, without gains, investors couldn't return the money to the banks and the banks would not be able to pay the companies and soon the workers found themselves without money. This day was known as the "Black Thursday" and this same day at least †-icon.png 103 jumped off the Wall Street Building, taking their lives with them.

    Because of the USA-icon.png Dawes Plan the Germany-icon.png German economy followed the collapse and so did France-icon.png Franceball and UK-icon.png UKball. This started the crisis of the 30's. Many economists proposed plans to help the economy and one of the best examples was the plan made by the UK-icon.png english economist "John Keynes" who proposed that the state needed to intervine in the Money-icon.png economy a bit to estimulate the Money-icon.png economy. These ideas were in conflict with the ideas of USA-icon.png Adam Smith, who among others, had been the face of the dominant Partido Liberal de Venezuela-icon.png liberal thoughts inside of USA-icon.png USAball's head.

    But the leaders of the main Money-icon.png bank corporations united to change the trend of the economy, they inyected money in a serie of values that seemed stable, this was known as the USA-icon.png "blue chips". Soon followed the millionarie USA-icon.png "John D. Rockefeller", which they did. Now the economy was going up right when the crack had started. They invested great ammounts of Money-icon.png money to make the stocks rise and make as well rise the confidence of investors and some newspapers said that the crisis of the stock market had "dissapeared", but this wasn't enough.

    After the recuperations that took place in Monday and Friday we arrive the 29th of October of 1929 or "Black Tuesday" when the economy truly collapsed, Red-icon.png Republican President of the USA-icon.png United States of America USA-icon.png Herbert Hoover didn't know what to do. Unemployment skyrocketed and in the next 3 months 3,000 banks in the USA-icon.png US alone would close. Shack neighbourhoods all over the USA-icon.png US would appear and finnally it arrived to every place between Argentina-icon.png Argentinaball and Australia-icon.png Australiaball. The UK-icon.png UK abandoned the Gold Standard (measuring money by gold). In France-icon.png France unemployment rose and in Germany-icon.png a young Austria-icon.png soldier that fought in the Great War became the symbol of economic salvation and german stenght in Germany-icon.png Germany, his name was Nazi-icon.png Adolf Hitler.

    In the next year USA-icon.png US president Roosvelt proposed and aproved multiple injections in the economy as a dust storm had also caused more economic recesion in the US, it damaged most of the USA-icon.png American midwest (Texas-icon.png Texasball, NewMexico-icon.png New Mexicoball, Colorado-icon.png, Kansas-icon.png Kansasball, Missouri-icon.png Missouriball, Nebraska-icon.png Nebraskaball, Wyoming-icon.png Wyomingball, Montana-icon.png Montanaball, SouthDakota-icon.png South Dakotaball, NorthDakota-icon.png North Dakotaball and Iowa-icon.png Iowaball). As the USA-icon.png US economy rose because of changing to war mode in 1941, the Great Depression ended. 

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