The economy in the interwar period

It has two stages: one of prosperity, the roaring twenties, and other crises, the Great Depression. The roaring twenties, between 1924 and 1929, were based on: “The development of the industry. “The increase in consumption. “The stock market investments. The economic crisis of 1929, or the Great Depression, was caused by excess production and an overvalued stock price of the stock market. The stock market crisis caused a general economic depression. Now, the crisis is spreading across the world. The consequences of the crisis “In the economic field decreased agricultural and industrial production and foreign trade. “Politically, the crisis favored the discrediting of democracy, gaining prominence as other ideologies totalitarianism and communism. Finding solutions Some states promoted autarky or economic self-sufficiency, but most took the ideas proposed by JM Keynes. In the U.S., President Roosevelt launched the New Deal in 1933, an economic recovery program based on public works and aid to the unemployed and businesses.