Great Depression

From IxWiki
Revision as of 14:07, 21 January 2020 by Iander (talk | contribs) (→‎Yonderre)
Jump to navigation Jump to search

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.


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 Burgoignesc gens des mejans tried to profit off of the war and the Depression of 1900 but as the markets recovered they 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 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.




Soup kitchen specifically for children in Castruppe, Yonderre

The Great Depression began in Yonderre following the market panics of the HLE, Yonderre's primary trading partners. Yonderre had escaped the Red Interregnum largely unscathed causing overconfidence in the Yonderian stock market prior to the Great Depression. Large investments had been made following the Red Interregnum and major building projects were underway all over Yonderre, peaking in 1909. Although the market was shaken by the debt recalls of the Central Bank of Urcea, a general belief that the crash was only temporary persevered and trading continued with an optimistic belief that the crashes in the HLE would in fact lead to prosperity. It was soon realized however that the increased spending was simply expanding a fragile monetary bubble, which finally burst in early 1910.

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 Great War that Yonderian industry fully recovered, with a sudden spike of arms manufacturing and export of raw steel to the warring parties.