Greatness: The date of April 2, 2025 has been inscribed in history. On that day, US President Donald Trump imposed a mutual tariff on more than 180 countries. This has created economic turmoil in the whole world and the stock markets around the world have been destroyed. In this situation, we miss a century -old ‘Greatness’, which started from America and then spread all over the world. Let us know the story of ‘Greatness’…
‘Black Tusade’ is a global recession
This story is 96 years old. On Tuesday, October 29, 1929, ‘Black Tusade’ i.e. ‘Bad Tuesday’ was marked, as the global palace was at its peak. The recession that covered the whole world was called ‘Greaty’ because it destroyed humanity for a decade.
How was America rich before the recession?
In the year 1928, American citizens were living a rich life. The unemployment rate was only 4 percent, which meant that 96 out of every 100 people had any source of income. Facilities like electricity and landline telephone were easily available. At that time there was a dramatic increase in the sales of radio considered luxury. The cars had become so cheap that a car could be purchased in every house. Sales of houses and land increased. People used to travel a lot. There was heavy investment in the stock market. Even those who did not have money, they were investing that money in the stock market to take advantage of the stock market by taking loans from the bank. In short, American people were very happy, spending openly, and the flow of money was rapidly carrying on the American economy.
The unbridled pace of Atti has slowed down.
The principle of ‘very universally forbidden’ (ie anything is not very good in anything) has become prevalent in America as well. Industrial production declined drastically and people stopped purchasing. After buying a vehicle, radio etc., the one who runs for years, no one will buy it again and again, right? Therefore, a pile of finished goods started. The income of factories stopped due to selling without goods. Employees’ houses began to break as they were not paid salaries. As happened in the industrial sector, the same happened in the agriculture sector. The farmers were overwhelmed by their severed crops. Everything started rotting due to lack of buyers. Farmers were destroyed. As soon as the circulation of money stopped, America’s economy collapsed.
The stock market eventually started declining.
On 24 October 1929, the stock market began to fall as the flow of money was interrupted. The day was recorded in history as ‘Kala Thursday’. On that day, the share prices began to fall continuously, but some entrepreneur traders stopped the stock market from falling by making large purchases of shares. Stock prices started increasing again. People breathed a sigh of relief.
On 28 October 1928, signs of recession started again appearing. The share prices started falling, but the market ignored it. Nobody had an idea of how unprecedented uproar the next day is going to create. The stock market declined drastically on the morning of 29 October 1929. About 16 million shares were purchased and sold at the New York Stock Exchange, but continued to fall in a rapid decline. It declined by 11.73%. Nothing was heard on Wall Street other than ‘Sell-Bacho’. The day was recorded in history as ‘black Tuesday’.
This vicious cycle started and continued.
During the boom, banks gave excessive loans. Salaryless people could not repay the bank loan and money stopped in banks. Those who had savings in the bank, increased the withdrawal from the bank to run the house, due to which the banks started getting empty. International trade came to a standstill due to the demolition of the monetary cycle. Thus, one thing impressed the other, and the other impressed the third. This vicious cycle continued and eventually the result came up as a recession known as ‘Greaty’.
‘Black Tusade’ sowed the seeds of global recession
Industries in America were closed due to lack of funds. Millionaires and banks were ruined. People lost jobs, lost savings, lost houses. Like today, America used to trade a lot with other countries of the world in those days, so the recession there first influenced Europe and then the whole world was in the grip of gathering. Industries began to shut down in Europe, Asia and other continents. People’s income has reduced. The unemployment rate in many countries has reached 33%. By 1932, global industrial production had declined by 45%, causing many countries around the world to face a lack of supply till the next decade. This recession was known as ‘Greatness’. It was the biggest economic downturn in human history.
Suicides increased, people started dying of hunger, an atmosphere of fear arose.
In two years of recession, two thousand banks became bankrupt. In 4 years, 11,000 banks (half of all the US banks) were closed. People were afraid of depositing money in banks which were still working. A woman who lost everything in the recession committed suicide by jumping from the 44th floor of a new York building. After that the market of rumors became so hot that when a person climbed the high building to do painting, people started looking at him, thinking that he too was going to commit suicide.
The Americans trapped in the depths of the recession did not have money to buy two times. Long queues started at the centers providing free food. 82,000 free food was distributed daily in New York City alone. The homeless people used to eat such food and slept on the pavement at night.
The historic Hoover Dam was constructed for employment generation.
To provide employment to Americans during the Greaty, the then Republican President Herbert Hoover constructed a huge Hoover Dam on the Colorado River. The dam construction project provided employment to 5,000 people, but when millions of people across the country were suffering from a major crisis like Greatness, the inauguration of a project was not enough. Economists wanted the government to take strict steps to handle the situation but nothing like this happened.
The recession changed government, government schemes started doing work
The presidential election was held amidst the recession. The ruling Republican party lost. New York’s Democratic Governor Franklin D. Roosevelt attended the presidential race. The public believed his promises to get the country out of the recession and won Roosevelt, and became President on 4 March 1933. He implemented Tera scheme for employment generation.
Terra (Temporary Emergency Relief Administration) scheme was implemented across the country. The crop not sold in the fields was collected and it was used to provide free food to the people. For the first time in the US, mid-day meals were provided in schools so that parents do not have to pay a single meal for their children.
To provide employment to the working class, the government launched the CWA (Civil Works Administration) scheme, under which roads, parks, schools, bridges etc. were constructed across the country. This provided employment to more than four million workers.
Rules to increase revenue were changed, ban on liquor lifted
The ban on liquor was lifted to increase government revenue. This increased the tax received by the government. The government took control of the stock market and made strict rules to monitor the trade. To end the banking crisis, he allowed only those banks to operate, which were financially viable and could work strictly for a long time. This increased people’s confidence in banks. People started saving banks again.
World War II made America a superpower.
By 1939, the influence of the Greatness in the US had ended. At the same time, World War II began and the world once again drowned in uncertainty. However, America was not initially not part of the war. The US had to join the war when Japan attacked the US base at Pearl Harbor. America needed weapons for war. Factories opened to make it. Millions of people got a lot of work. People started working in the army to fight in war. Thus, America benefited from World War II and its economic situation began to improve again.
By the time World War II ended in 1945, America had become the richest country in the world. That monarchy persists till date. Small movement in the US stock market also affects stock markets around the world. This is happening right now.
What other economic recession has the world seen?
Apart from the 1929 gathering, the world has also seen other economic recession.
1973 oil crisis
This recession came due to an increase in oil prices by the organization of petroleum exporting countries (OPEC). Due to this, many developed countries faced economic crisis and inflation.
2002 Deadness of
In 2001, there was a 9/11 terrorist attack in the US. At the same time, the dot-com bubble also exploded, causing a recession which lasted for many years. As a result, the stock markets collapsed, unemployment increased in many countries and economic activities declined.
2008 recession
This recession began with the crisis of the housing sector in the US. Its effect was felt all over the world. Banks of many countries collapsed, economic growth slowed down and unemployment increased.
Recession due to corona lockdown
Lockdown, which launched the Kovid-19 epidemic started in late 2019, negatively impacts the global economy. During that time the global GDP declined by 3%. During this period, the world suffered more economic losses than all previous crises.
The post Greatness: 11,000 banks failed in America’s unprecedented gathering first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
