What was happening in the world before the depression?

Before writing an article about the Great Depression that started in 1929, it may be better to know, so last time I wrote an article about corporations and securities companies.

But it's still not enough to talk about the Great Depression ...

So, I would like to investigate the situation before the Great Depression.

Roaring Twenties

Before the Great Depression, there was a time in America called the "Roaring Twenties." America was in an unprecedented boom.

It was about 30 years ago in Japan, so I think you've actually seen and heard about it, but before the bubble burst, there was a booming economy. Even if the economy fails during a recession, the impact will be minor.

Here, such " Roaring Twenties I will touch on.

World War I

The 1920s are still World War I The time when (1914-1918) was just over.

World War I was a " coalition (cooperative) country including France and Great Britain, with Europe as the main battlefield. And " Central Powers of World War including the German Empire" It is a battle with.

Let's take a look at what each country was like.

For Europe

Looking at the circumstances of typical countries before World War I ...

Since the Industrial Revolution was the first to occur, it became the main light industry and became a financial center from early on.

• Due to its geographical proximity to the United Kingdom, a large number of British products are distributed. It was a gradual industrial revolution
• Lost in the Franco-Prussian War of 1870-71, political turmoil in France
• I couldn't invest as much as Germany because of the compensation.

Germany loosened the standards of joint-stock companies due to the delay of the Industrial Revolution and emphasized the heavy chemical industry.

It was like this. Germany or Britain / France ... You can imagine which one is more likely to have an advantage in the battle. Sure enough, it is said that there were many German-dominated theaters in Europe.

The allies were also fighting with Russia, but they couldn't stand the prolonged war situation and the Russian Revolution destroyed Russia. The battle with Russia in the eastern part of Germany (Eastern Front) disappeared naturally, and even though the force was devoted to the western part, trenches had already been built and it was not possible to attack. By changing to a policy of attacking logistics, the battle situation will change significantly.

In the case of the United States

World War I The main battlefield in Europe was Europe, and the United States was initially in a neutral position. The upper class of the United States was a pro-allied nation, partly because of its close ties to British aristocrats, but it took a neutral position due to internal circumstances (the United States is an immigrant nation with many immigrants from Germany).

The United States has a industrial revolution at a stage similar to Germany and France. However, various factors such as the vast land, the diversity of labor and transportation routes, and the acquisition of cheap energy have combined to develop industries other than the cotton industry.

Even at the time of neutrality, orders for military supplies were flooded. About 150 years before the war, the United States, which had three big battles in the country, had a lot of national debt, but it seems that the demand was enough to pay off even that debt.

Meanwhile, the United States was attacked by a German submarine (a part of the attack on logistics) Allied side Determined. The morale of the Allies, which had been disadvantaged by the participation in the United States, will be restored.

Of course, the longer the war, the greater the financial burden on Europe. Especially in Britain, when it was decided to participate in the United States, it was at the last minute of the financial crisis.

European countries issue more war bonds as the war prolongs. American countries and companies bought the war bonds and became creditors . ..

* It is said that the reason why the United States participated in World War I was mainly considering the possibility that the war bonds lent to the Allies would not be returned.

Roaring Twenties

After the end of World War I in 1918, the power relations of the world changed drastically. With the devastated Europe in the background, the United States, which had not made its own country a battlefield, had considerable strength.

Cultures that break traditional traditions, such as jazz and flappers (redefining modern women), flourish.

Private cars, washing machines, radios, movies, etc ... Home appliances, etc., which are indispensable nowadays .. Mass consumer goods will be introduced. Records are becoming more common and seem to have played a role in the jazz epidemic.

New technologies have extended not only to changes in the home, but also to infrastructure. Road construction became indispensable with the spread of private cars, and a power plant was also constructed. With the development and introduction of modern sewers in household water, "America's prosperity will continue for a long time" It will become an atmosphere.

In the case of Japanese, there are cases where the Chinese character "ki" is used in the economy, and the psychology of the general public is also included.

The atmosphere of "it will continue to prosper for a long time" in the United States also boosted the boom and was full of vibrancy. It seems that many people even bought stocks by borrowing money.

The buying and selling of stocks at securities companies increased, and the stock price in the United States rose at a stretch.