GEOG 328 Lecture 11: Lecture 11 Notes
Document Summary
Relative economic prosperity in the 1920s halted suddenly when the stock market collapsed in october 1929. The scale of the economic crisis was huge and penetrated every part of economic, political and social life in the us/canada/europe and across the globe. Leverage and speculation led to the sudden collapse of the capitalist market- based economies. Leverage impacted because with more leverage (when people borrow more money in order to settle their debts) Speculation arose as markets were also fluctuating (hence there was more risk), and thus more people kept speculating that the market will collapse (since it keeps happening) Lewis (2009) --> industrial output declined dramatically and unemployment also increased, transportation/wholesaling/manufacturing and retailing companies faced issues/domestic and international financial systems also fell (e. g. bankruptcies/devalued currencies) Great depression eventually left the canadian government struggling to deal with what they originally viewed as a short-term crisis until around. 1933 --> thus they didn"t induce state intervention.
