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Great Depression: Difference between revisions
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The '''Great Depression''' was a severe worldwide economic depression that took place mostly during the 1910s-1930s. The timing of the Great Depression varied across nations; in most countries, it started in the early 1910s and lasted until the early 1930s. The Great Depression is commonly used as an example of how intensely the world's economy can decline. | The '''Great Depression''' was a severe worldwide economic depression that took place mostly during the 1910s-1930s. The timing of the Great Depression varied across nations; in most countries, it started in the early 1910s and lasted until the early 1930s. The Great Depression is commonly used as an example of how intensely the world's economy can decline. | ||
==Background== | ==Background== | ||
During the [[Red Interregnum]], southern [[Levantia]] faced a series of economic crisis. The fear of a socialist [[Urcea]] lead to market crashes in most capitalist nations across the globe, but the quick restoration of the monarchy ended the Depression of [[1900]] and most markets bounced back. The fairly new [[Burgundie|Burgoignesc]] gens des mejans tried to profit off of the war and the Depression of [[1900]]. Markets recovered creating increasingly available credit, but as a consequence of the recovery cycle fueled by investment, economic notables were saddled with more debt than they could afford both in [[Burgundie]] and [[Urcea]]. In [[1909]], the [[Royal Bank of Urcea]] recalled some of those debts and when they were defaulted on there was widespread panic that all of the debts would be recalled. This caused a market panic in [[Urcea]] followed quickly by a similar panic in [[Burgundie]]. The collapse of the powerhouses of the [[Holy Levantine Empire]]'s economy threw the remainder of the empire into a tailspin. [[Urcea]]'s economy recovered somewhat by 1915 due to the proliferation of the major infrastructure and reconstruction projects of [[Patrick III of Urcea|King Patrick III]], but such efforts failed to spread significant benefit to the rest of the Empire, leading the [[Occidental World]] to a sharp depression. | During the [[Red Interregnum]], southern [[Levantia]] faced a series of economic crisis. The fear of a socialist [[Urcea]] lead to market crashes in most capitalist nations across the globe, but the quick restoration of the monarchy ended the Depression of [[1900]] and most markets bounced back. The fairly new [[Burgundie|Burgoignesc]] gens des mejans tried to profit off of the war and the Depression of [[1900]]. Markets recovered creating increasingly available credit, but as a consequence of the recovery cycle fueled by investment, economic notables were saddled with more debt than they could afford both in [[Burgundie]] and [[Urcea]]. In [[1909]], the [[Royal Bank of Urcea]] recalled some of those debts and when they were defaulted on there was widespread panic that all of the debts would be recalled. This caused a market panic in [[Urcea]] followed quickly by a similar panic in [[Burgundie]]. The collapse of the powerhouses of the [[Holy Levantine Empire]]'s economy threw the remainder of the empire into a tailspin. [[Urcea]]'s economy recovered somewhat by 1915 due to the proliferation of the major infrastructure and reconstruction projects of [[Patrick III of Urcea|King Patrick III]], but such efforts failed to spread significant benefit to the rest of the Empire, leading most of the [[Occidental World]] to a sharp depression. | ||
== Impacts == | == Impacts == | ||
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The Great Depression hit Yonderian industry hard as the value of exports plummeted. Yonderian heavy industry suffered too, particularly in the steel and lumber sectors, losing lucrative contracts for building materials as well as exports. Many of the major building projects and much of the ongoing urbanization had to be put on hold as a result of bankruptcies, leaving many buildsites in various stages of completion all over Yonderre. As a direct result of this, the Great Depression caused increased levels of unemployment in [[Yonderre]], particularly among unskilled workers. General goods prices increased too, albeit only temporarily, returning to normality by the early [[1910s]]. It would not be until the [[Second Great War]] that Yonderian industry fully recovered, with a sudden spike of arms manufacturing and export of raw steel to the warring parties. | The Great Depression hit Yonderian industry hard as the value of exports plummeted. Yonderian heavy industry suffered too, particularly in the steel and lumber sectors, losing lucrative contracts for building materials as well as exports. Many of the major building projects and much of the ongoing urbanization had to be put on hold as a result of bankruptcies, leaving many buildsites in various stages of completion all over Yonderre. As a direct result of this, the Great Depression caused increased levels of unemployment in [[Yonderre]], particularly among unskilled workers. General goods prices increased too, albeit only temporarily, returning to normality by the early [[1910s]]. It would not be until the [[Second Great War]] that Yonderian industry fully recovered, with a sudden spike of arms manufacturing and export of raw steel to the warring parties. | ||
=== Alstin === | |||
While much of the world was embroiled in the Great Depression, the [[Alstin|United Republic]] experienced a period of unprecedented level of economic growth between 1909 and 1925. The period, known nationally as the Golden Year, saw such unprecedented economic growth and prosperity across much of Alstinian society. This was accompanied with a distinctive social, artistic and cultural dynamism and period of technological advancement, all the while as the number of immigrants rose (particularly from Levantia) and consequently the level of urbanization of Alstinian cites. | |||
The prosperity brought upon during the Golden Years ended however, with the Lloyd Street Crash of 1925, caused by an over-saturation of junk bonds and misplaced speculation on overseas markets caused a panic among investors, which in turn prompted the public to lose faith and initiate bank runs, wiping out the savings of many Alstinians. This precipitated an economic crisis known in Alstin as the Blunt Depression, a microcosm of the Great Depression whose ongoing effects indirectly contributed to the scale of the Depression in the United Republic. By 1928, at its nadir, the Alstinian economy had declined by 7% from 1925, the unemployment rate stood at 18.3%, and crime nationally had increased to its highest rate in nearly a century. | |||
Following his election as president in 1928, [[Alfred F. Jones]] responded with the Dawes Plan, a comprehensive series of economic and financial programs geared towards providing financial relief to individuals and businesses, promote economic recovery, and institute economic and financial reforms. While these efforts were largely successful, it would not be until the outbreak of the [[Second Great War]] that the Alstinian economy had fully recovered. | |||
[[Category:Crises]] | [[Category:Crises]] | ||