Herbert Hoover, when assuming the office of the President of the United States, said in March 1929: "I have no fear for the future, it shines with hope."
Unfortunately, Thursday, October 24, 1929 is also called the "Black Thursday", the world economy plunged into the chaos as Wall Street, the North American stock exchange collapsed. The stock market crash on Wall Street transformed into an economic crisis that spread worldwide, particularly in Latin America, which was affected despite the apparent prosperity it had known in the preceding 20 years.
[...] Transition: The financial crisis in Latin America launched a prolonged depression, which improved after the restart, facilitated by the 2nd World War. However this crisis had a major effect on the structure of the economies in Latin America. Before 1929, national interests were not clearly differentiated from foreign interests and this resulted in the tensions and weaknesses of the model exporter of 1929. It is not feasible to establish a general model regarding the response to the crisis, as each country is different the overall trends must be considered, as well as the structures unique to each country and the importance of the decisions of governments. [...]
[...] The crash of the stock market had a major on export of products and the situation worsened in 1930 with the adoption of protectionist measures by the US With the collapse of the international capital markets, remittances to Latin America become negative. Latin American prosperity, which depended on foreign investment, was seriously compromised by the loss of funding sources With the withdrawal of capital, debt began to weigh more heavily on the economies of Latin American countries. Latin America and was committed to a vicious circle, from which it has still not emerged with respect to the international position of the country. [...]
[...] Following the 1929 crisis, there was a real change in the social organization of Latin America. Depending on the period, some classes were relatively more, or less enhanced by intellectuals and politicians. Prior to 1929, the countries experienced a "return to roots", or at least nostalgia for old native civilizations. After 1929, the countries realized the importance of interacting with other cultures to develop new social strata. This realization led to the reform of the economy in Latin America. In 1929, there was partial industrialization in Latin America (accounting for of GDP Colombia, and Argentina of GDP maximum). [...]
[...] In 1928, declining prices of export products (wheat, cotton, and coffee) was combined with a retreat of foreign capital. We can therefore say that in Latin America, the crisis of 1929 was not as sudden as it seems at first glance and that these early signs of crisis heralded a profound disturbance. The crisis of 1929: A shock wave Latin America was hit hard by the economic crisis, which plunged it into economic chaos from which it emerged only around 1945. Industrial production was down 45% between 1929 and 1932, while imports and exports fell by 70%. [...]
[...] The crisis of 1929 helped in this process, since it enabled the leaders to distinguish national interests from those of foreigners, while highlighting the social problems of Latin America, which could no longer be ignored. This crisis marked the beginning of the period of state intervention (which is permitted by populism). Though the new governments formed as a result of the crisis have different orientations, and are sometimes even opposing, they have clearly abandoned their laissez faire. Liberalism is no longer in vogue and the state does its duty by intervening to regulate the economy. [...]
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