The Crisis For 1929 return, the party finished in a violent economic crisis that all shakes the foundation of the world-wide economy. The production grows, the consumption diminishes, the stock exchange breaks, the industries enter in bankruptcy and the misery reigns. With end of the first War, U.S.A. passes for one ‘ ‘ boom’ ‘ economic. Industrial companies and agricultural proliferate and are developed. Great conglomerates of companies with open capital if become common. The Stock exchange has movement is of the common one and the speculation with action is great the attractive one of the moment.
Immediate enrichment was offered and easy to who it acquired action. They were corporate share of insurances, agriculturists, mines, great supermarkets, banks, etc. All and of all the social classrooms they practised this ‘ ‘ esporte’ ‘ financier, using in this all its economies. These companies satiated capitalized more produce each time to take care of, as much the American consuming market, as the European market and Latin American, generating, with this, a superproduction of merchandises. But, if she exists merchandises in excess, according to logical it capitalist market, does not exist inflation. If inflation does not exist, does not have necessity of increase of wages. All we know, for proper experience, that inflation absence is a great lie.
After all, in charge institutions for the calculation of the inflation are controlled for the government that has interests in demonstrating a financial balance of its administrations. With objectives to keep the mentally ill population the truth. Therefore, the results are camouflaged and maquiados. this occurs in all the places and all the moments of history. U.S.A., along with all its development, was not and nor is, different. It could, according to calculations not to have inflation, but, the wages to each day lost its power of purchase and the population consumed each time less provoking one subconsumo. Repercussion Parallel, in this height of ‘ ‘ campeonato’ ‘ the Europeans came, gradual, recouping its economy and, slowly, diminishing the importations of American products, what he reflects in the American problem of subconsumo. This reduction in the consumption of American products, parallel the production in excess produces inexecutable and indetermined an equation: superproduction ‘ ‘ versus’ ‘ subconsumo. As result, the merchandises in excess were storaged. The companies had had that to diminish the production, the profits had compressed. The shares not so attractive. Gradual, the people start if to disinterest for the action ownership and try to get rid themselves of these financial assets. The prices of these start to fall, it offers increases and the panic to contaminate who possua. Finally, in a Fifth fair, fatdica, 05 of September of the year in course, the Stock market of New Iorque (main of the country), exceeds its record, offering thousand and thousand of action for sales. The values fall down disastrously from a high place the zero almost and the stock market suffers the biggest fall, after the 1929 in addition. with U.S.A., the entire world enters in crisis. I wait to have helped to it to understand it the economic chaos that we are living.