Black Tuesday: How the 1929 Crash Plunged America into a Decade of Despair
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[{'start': '32.130', 'end': '35.740', 'text': 'In the history of world economic development, humanity has'}, {'start': '35.740', 'end': '40.240', 'text': 'witnessed countless serious crises originating from developed countries.'}, {'start': '40.960', 'end': '43.940', 'text': 'Among them, the worst crisis with the most'}, {'start': '43.940', 'end': '47.540', 'text': 'severe consequences was the Great Depression that began'}, {'start': '47.540', 'end': '48.940', 'text': 'in 1929.'}, {'start': '50.000', 'end': '53.760', 'text': 'During this crisis, banks nearly closed, the stock'}, {'start': '53.760', 'end': '58.680', 'text': 'market almost collapsed, unemployment and famine spread everywhere,'}, {'start': '58.680', 'end': '62.220', 'text': 'leaving a terrible shadow in the hearts of'}, {'start': '62.220', 'end': '65.960', 'text': 'people worldwide in the early 20th century.'}, {'start': '66.540', 'end': '69.200', 'text': 'In this article, we will explore the Great'}, {'start': '69.200', 'end': '75.580', 'text': 'Depression of 1929-1939, the most terrible economic'}, {'start': '75.580', 'end': '77.340', 'text': 'disaster in history.'}, {'start': '78.000', 'end': '82.520', 'text': 'We will analyze the causes, developments, impacts and'}, {'start': '82.520', 'end': '86.680', 'text': 'valuable lessons this crisis left for humanity.'}, {'start': '87.300', 'end': '90.520', 'text': 'Background and development of the U.S. economy'}, {'start': '90.520', 'end': '92.400', 'text': 'before the crisis.'}, {'start': '92.780', 'end': '95.260', 'text': 'Until the night before the worst crisis the'}, {'start': '95.260', 'end': '99.400', 'text': 'United States had to face in 1929, everything'}, {'start': '99.400', 'end': '100.700', 'text': 'was still bright.'}, {'start': '101.440', 'end': '105.660', 'text': 'In his final speech before retirement, the incumbent'}, {'start': '105.660', 'end': '109.580', 'text': 'White House President Calvin Coolidge said, I appreciate'}, {'start': '109.580', 'end': '112.620', 'text': 'the present with satisfaction and look to the'}, {'start': '112.620', 'end': '114.840', 'text': 'future with optimism.'}, {'start': '115.960', 'end': '120.240', 'text': 'A month earlier, Republican candidate Herbert Hoover, also'}, {'start': '120.240', 'end': '123.200', 'text': 'from the Republican Party, was elected president.'}, {'start': '124.240', 'end': '127.740', 'text': 'Many criticized Coolidge and Hoover for not seeing'}, {'start': '127.740', 'end': '128.580', 'text': 'what was happening.'}, {'start': '129.199', 'end': '132.880', 'text': 'In fact, during the 1920s, the United States'}, {'start': '132.880', 'end': '137.120', 'text': 'became wealthier with the automotive and construction industries'}, {'start': '137.120', 'end': '141.080', 'text': 'growing rapidly throughout the decade, with the stability'}, {'start': '141.080', 'end': '145.420', 'text': 'created by these two prosperous economic sectors, American'}, {'start': '145.420', 'end': '148.100', 'text': 'wages and consumption improved.'}, {'start': '148.760', 'end': '152.360', 'text': 'Ford produced 9000 Model Ts in a single'}, {'start': '152.360', 'end': '156.340', 'text': 'day, while spending on new home construction rose'}, {'start': '156.340', 'end': '158.380', 'text': 'to 5 billion in 1925.'}, {'start': '159.360', 'end': '162.600', 'text': 'Although there were slight declines between 1923 and'}, {'start': '162.600', 'end': '168.100', 'text': '1926, overall, the U.S. economy remained very'}, {'start': '168.100', 'end': '168.720', 'text': 'strong.'}, {'start': '169.340', 'end': '170.780', 'text': 'Banks were no exception.'}, {'start': '171.740', 'end': '175.180', 'text': 'By 1929, the total value of 25,000'}, {'start': '175.180', 'end': '177.340', 'text': 'U.S. bank accounts was 60 billion.'}, {'start': '177.460', 'end': '179.500', 'text': 'Their assets also appeared to be strong.'}, {'start': '180.260', 'end': '183.180', 'text': 'Only 60% were loans and cash accounted'}, {'start': '183.180', 'end': '184.340', 'text': 'for 15%.'}, {'start': '184.340', 'end': '188.160', 'text': 'Of the remaining assets, 20% were bonds,'}, {'start': '188.640', 'end': '192.180', 'text': 'mostly bonds and cash accounts, super safe assets'}, {'start': '192.180', 'end': '194.040', 'text': 'that accounted for more than half.'}, {'start': '195.060', 'end': '198.700', 'text': 'With high quality assets, banks could be completely'}, {'start': '198.700', 'end': '199.420', 'text': 'secure.'}, {'start': '200.360', 'end': '204.540', 'text': 'The growing economy nurtured trust and also catalyzed'}, {'start': '204.540', 'end': '205.100', 'text': 'investment.'}, {'start': '205.720', 'end': '210.060', 'text': 'In 1927, there were 577 million shares in'}, {'start': '210.060', 'end': '211.020', 'text': 'the New York stock market.'}, {'start': '211.520', 'end': '215.260', 'text': 'By 1928, this number had grown to 920'}, {'start': '215.260', 'end': '215.760', 'text': 'million.'}, {'start': '216.460', 'end': '219.460', 'text': 'At the same time, stock prices increased like'}, {'start': '219.460', 'end': '220.060', 'text': 'fireworks.'}, {'start': '220.780', 'end': '223.140', 'text': 'In the summer of 1929, the prices of'}, {'start': '223.140', 'end': '225.280', 'text': 'some stocks increased by 25%.'}, {'start': '225.280', 'end': '230.160', 'text': 'However, the 1920s presented the Federal Reserve, Fed,'}, {'start': '230.960', 'end': '232.940', 'text': 'which was still very young at the time,'}, {'start': '233.520', 'end': '234.980', 'text': 'with a major challenge.'}, {'start': '235.540', 'end': '239.140', 'text': 'Stock prices and real estate prices were moving'}, {'start': '239.140', 'end': '240.600', 'text': 'in opposite directions.'}, {'start': '241.320', 'end': '243.980', 'text': 'The market exploded with shares of new technology'}, {'start': '243.980', 'end': '248.360', 'text': 'companies, with radio and aviation being particularly favored.'}, {'start': '249.260', 'end': '252.720', 'text': 'However, very few of these had a tradition'}, {'start': '252.720', 'end': '256.540', 'text': 'of paying interest, and investors poured money into'}, {'start': '256.540', 'end': '259.740', 'text': 'them, hoping that prices would continue to rise.'}, {'start': '260.500', 'end': '263.660', 'text': 'At the same time, shares of consumer companies'}, {'start': '263.660', 'end': '267.260', 'text': 'weakened as the price to consumer ratio declined.'}, {'start': '267.940', 'end': '270.680', 'text': 'Therefore, the question for the Fed was whether'}, {'start': '270.680', 'end': '273.340', 'text': 'to increase exports to heat up the market'}, {'start': '273.340', 'end': '276.440', 'text': 'or reduce exports to stimulate the economy.'}, {'start': '277.400', 'end': '281.540', 'text': 'Finally, market observers won, and the Fed increased'}, {'start': '281.540', 'end': '283.360', 'text': 'exports in 1928.'}, {'start': '284.020', 'end': '286.000', 'text': 'This was a mistake because the increase in'}, {'start': '286.000', 'end': '289.220', 'text': 'exports from 3.5% to 5%'}, {'start': '289.220', 'end': '292.260', 'text': 'was too small to heat up the market.'}, {'start': '292.840', 'end': '294.240', 'text': 'Beginning of the crisis.'}, {'start': '294.900', 'end': '297.480', 'text': 'The 1929 stock market crash.'}, {'start': '298.000', 'end': '301.980', 'text': 'Stock prices continued to rise until September 1929,'}, {'start': '302.480', 'end': '305.900', 'text': 'with the Dow Jones reaching a record 381'}, {'start': '305.900', 'end': '306.400', 'text': 'points.'}, {'start': '306.880', 'end': '310.720', 'text': 'However, key industries of the US economy were'}, {'start': '310.720', 'end': '313.200', 'text': 'severely affected, and by the end of that'}, {'start': '313.200', 'end': '317.740', 'text': 'summer, industrial output had dropped to 45%.'}, {'start': '317.740', 'end': '321.440', 'text': 'Along with the deterioration of the domestic economy,'}, {'start': '322.040', 'end': '325.780', 'text': 'unfavorable news from abroad also emerged.'}, {'start': '326.320', 'end': '328.900', 'text': 'In September of that year, the London Stock'}, {'start': '328.900', 'end': '332.840', 'text': 'Exchange collapsed when Clarence Hathaway, a financial sector'}, {'start': '332.840', 'end': '334.180', 'text': 'fraudster, was arrested.'}, {'start': '334.180', 'end': '337.840', 'text': 'Thus, finally, the sell-off trend began.'}, {'start': '338.780', 'end': '342.200', 'text': 'On October 18th, 1929, the collapse appeared when'}, {'start': '342.200', 'end': '345.640', 'text': 'investors, in fear, sold a record number of'}, {'start': '345.640', 'end': '349.600', 'text': '12,650 shares.'}, {'start': '349.720', 'end': '353.160', 'text': 'Leading companies and banks tried to stabilize the'}, {'start': '353.160', 'end': '357.140', 'text': 'market by buying into many large exchanges, causing'}, {'start': '357.140', 'end': '360.380', 'text': 'stock prices to rise slightly on Friday.'}, {'start': '360.380', 'end': '363.780', 'text': 'But by Monday of that week, the storm'}, {'start': '363.780', 'end': '367.560', 'text': 'hit again, sending the market into free fall.'}, {'start': '368.300', 'end': '371.460', 'text': 'After Monday night came Tuesday night when stock'}, {'start': '371.460', 'end': '373.160', 'text': 'prices completely collapsed.'}, {'start': '373.860', 'end': '379.540', 'text': 'On Thursday evening, October 24th, 1929, an unprecedented'}, {'start': '379.540', 'end': '383.320', 'text': 'event occurred when 6 million shares were sold,'}, {'start': '383.320', 'end': '387.580', 'text': 'leading to continuous price drops throughout the morning.'}, {'start': '388.640', 'end': '391.340', 'text': 'People panicked and rushed to Wall Street.'}, {'start': '392.320', 'end': '395.720', 'text': 'By noon, there had been 11 suicides.'}, {'start': '396.320', 'end': '399.620', 'text': 'At JP Morgan Bank headquarters, opposite the Stock'}, {'start': '399.620', 'end': '403.000', 'text': 'Market Building, half of the leaders of major'}, {'start': '403.000', 'end': '406.600', 'text': 'banks met to decide to stabilize the market'}, {'start': '406.600', 'end': '410.220', 'text': 'by buying back a large number of strategic'}, {'start': '410.220', 'end': '410.900', 'text': 'shares.'}, {'start': '411.520', 'end': '414.060', 'text': 'This was effective when, at the end of'}, {'start': '414.060', 'end': '417.700', 'text': 'the day, some shares even increased in price'}, {'start': '417.700', 'end': '419.360', 'text': 'compared to the previous day.'}, {'start': '419.880', 'end': '423.780', 'text': 'But not long after, shareholder trust was destroyed,'}, {'start': '424.420', 'end': '427.380', 'text': 'although stock market companies tried to convince people'}, {'start': '427.380', 'end': '429.540', 'text': 'that this was the best time to buy.'}, {'start': '430.420', 'end': '436.360', 'text': 'On Monday, October 28th, 1929, 9 million shares'}, {'start': '436.360', 'end': '437.380', 'text': 'were sold.'}, {'start': '437.980', 'end': '442.900', 'text': 'By Tuesday, October 29th, this number had reached'}, {'start': '442.900', 'end': '444.260', 'text': '16 million.'}, {'start': '444.760', 'end': '447.260', 'text': 'And this time, the banks did not intervene'}, {'start': '447.260', 'end': '450.380', 'text': 'anymore because nothing could stop this boom.'}, {'start': '451.220', 'end': '454.420', 'text': 'By November, the Dow Jones had decreased by'}, {'start': '454.420', 'end': '458.400', 'text': '51 percent compared to September, and shares fell'}, {'start': '458.400', 'end': '462.860', 'text': 'sharply over the next three years, spreading financial'}, {'start': '462.860', 'end': '464.580', 'text': 'and economic crisis.'}, {'start': '465.040', 'end': '470.860', 'text': 'From 1929 to 1931, 4,300 banks closed.'}, {'start': '471.620', 'end': '474.000', 'text': 'Millions of people lost their money within a'}, {'start': '474.000', 'end': '474.500', 'text': 'day.'}, {'start': '475.220', 'end': '478.580', 'text': 'When trust was lost, Americans began to withdraw'}, {'start': '478.580', 'end': '481.120', 'text': "money to keep at home, while the Fed's"}, {'start': '481.120', 'end': '483.740', 'text': 'purchase of bonds only had a temporary effect'}, {'start': '483.740', 'end': '487.080', 'text': 'because the lucky banks still in existence were'}, {'start': '487.080', 'end': '488.300', 'text': 'in very bad shape.'}, {'start': '488.960', 'end': '491.780', 'text': 'Purchasing power and demand caused the activities of'}, {'start': '491.780', 'end': '495.400', 'text': 'economic production industries to stagnate, leading to 4'}, {'start': '495.400', 'end': '500.560', 'text': 'million Americans being unemployed in 1930, increasing to'}, {'start': '500.560', 'end': '505.000', 'text': '8 million in 1931 and 12 million in'}, {'start': '505.000', 'end': '505.960', 'text': '1932.'}, {'start': '506.780', 'end': '509.300', 'text': 'At the same time, coal production was pushed'}, {'start': '509.300', 'end': '512.539', 'text': 'down to the level of 1904, coal mining'}, {'start': '512.539', 'end': '516.140', 'text': 'pushed down to the level of 1876, other'}, {'start': '516.140', 'end': '519.419', 'text': 'economic indices were pushed down to levels only'}, {'start': '519.419', 'end': '522.559', 'text': 'seen in the late 19th century, and the'}, {'start': '522.559', 'end': '525.640', 'text': 'national income of the United States was halved.'}, {'start': '526.160', 'end': '528.700', 'text': 'Worse things continued to happen when the collapse'}, {'start': '528.700', 'end': '531.900', 'text': 'of a series of banks turned into waves.'}, {'start': '532.500', 'end': '536.260', 'text': 'The first wave occurred in 1930, beginning with'}, {'start': '536.260', 'end': '539.840', 'text': 'the bankruptcy of state-owned agricultural banks, such'}, {'start': '539.840', 'end': '542.920', 'text': 'as those in Arkansas, Illinois, and Missouri.'}, {'start': '543.880', 'end': '547.420', 'text': 'A total of 1,350 banks went bankrupt'}, {'start': '547.420', 'end': '548.020', 'text': 'that year.'}, {'start': '548.840', 'end': '551.160', 'text': 'The second wave came when the banks of'}, {'start': '551.160', 'end': '556.420', 'text': 'Chicago, Cleveland, and Philadelphia collapsed in April 1931.'}, {'start': '557.040', 'end': '559.740', 'text': 'External pressure made the situation worse.'}, {'start': '560.680', 'end': '563.880', 'text': 'Britain abandoned the gold standard, interest rates were'}, {'start': '563.880', 'end': '566.960', 'text': 'high, and U.S. exporters worried.'}, {'start': '567.900', 'end': '571.040', 'text': 'German and Austrian banks were also in a'}, {'start': '571.040', 'end': '571.920', 'text': 'state of panic.'}, {'start': '572.800', 'end': '575.420', 'text': 'Due to loss of credibility, the U.S.'}, {'start': '575.560', 'end': '578.200', 'text': 'began to cut more face money, and the'}, {'start': '578.200', 'end': '581.180', 'text': 'Fed bond buying campaign could not help at'}, {'start': '581.180', 'end': '581.680', 'text': 'all.'}, {'start': '582.080', 'end': '584.220', 'text': 'The last panic, and this time it happened'}, {'start': '584.220', 'end': '588.220', 'text': 'on a nationwide scale, began in February 1933,'}, {'start': '588.740', 'end': '591.100', 'text': 'with a statement in the state of emergency'}, {'start': '591.100', 'end': '592.180', 'text': 'of banks.'}, {'start': '592.560', 'end': '595.080', 'text': 'The first banks to close in this wave'}, {'start': '595.080', 'end': '598.400', 'text': 'were in Nevada, Louisiana, and Michigan.'}, {'start': '599.460', 'end': '601.540', 'text': 'Local banks with money sent to banks in'}, {'start': '601.540', 'end': '606.480', 'text': 'New York lost $760 million in February 1933.'}, {'start': '607.560', 'end': '611.320', 'text': 'In that situation, city banks would usually come'}, {'start': '611.320', 'end': '612.860', 'text': "back for the Fed's last aid."}, {'start': '613.460', 'end': '615.280', 'text': 'But the unexpected happened.'}, {'start': '616.160', 'end': '619.260', 'text': 'On March 4th, the Fed did exactly what'}, {'start': '619.260', 'end': '621.100', 'text': 'it set out to prevent the crisis from'}, {'start': '621.100', 'end': '624.360', 'text': 'doing when it refused to lend and closed'}, {'start': '624.360', 'end': '626.080', 'text': 'all surviving banks.'}, {'start': '626.580', 'end': '628.840', 'text': 'The Fed failed in its mission to act'}, {'start': '628.840', 'end': '631.800', 'text': 'as a source of funds in all emergencies.'}, {'start': '632.880', 'end': '635.180', 'text': 'It was the darkest week in the darkest'}, {'start': '635.180', 'end': '637.160', 'text': 'times of American finance.'}, {'start': '638.020', 'end': '641.100', 'text': 'Bank accountants and more than 2,000 banks'}, {'start': '641.100', 'end': '644.260', 'text': 'had to close that week, never to open'}, {'start': '644.260', 'end': '644.860', 'text': 'again.'}, {'start': '645.420', 'end': '647.060', 'text': 'Famine and social impact.'}, {'start': '647.540', 'end': '649.620', 'text': 'Due to the large number of people without'}, {'start': '649.620', 'end': '653.900', 'text': 'income and the absence of social assistance, famines'}, {'start': '653.900', 'end': '657.140', 'text': 'spread rapidly in the U.S. When the'}, {'start': '657.140', 'end': '660.100', 'text': 'poor began to starve to death in the'}, {'start': '660.100', 'end': '663.380', 'text': 'richest city in the country, New York, the'}, {'start': '663.380', 'end': '666.680', 'text': 'city government was forced to start providing free'}, {'start': '666.680', 'end': '668.000', 'text': 'aid on the streets.'}, {'start': '668.660', 'end': '671.800', 'text': 'However, many states did not even have enough'}, {'start': '671.800', 'end': '673.400', 'text': 'money to provide free aid.'}, {'start': '673.820', 'end': '676.220', 'text': 'In a letter titled, The U.S. Famine,'}, {'start': '676.420', 'end': '679.640', 'text': 'by researcher Boris Borisov, he stated that the'}, {'start': '679.640', 'end': '681.640', 'text': 'U.S. had lost more than seven million'}, {'start': '681.640', 'end': '686.260', 'text': 'lives in the 1932-1933 famine due to'}, {'start': '686.260', 'end': '690.000', 'text': 'the crisis, after calculating based on official data'}, {'start': '690.000', 'end': '692.300', 'text': 'from the U.S. Population Survey.'}, {'start': '693.120', 'end': '695.260', 'text': 'The crisis in the U.S. rapidly spread'}, {'start': '695.260', 'end': '698.440', 'text': 'to Europe and all over the world, destroying'}, {'start': '698.440', 'end': '699.800', 'text': "many countries' economies."}, {'start': '700.920', 'end': '705.040', 'text': 'International trade values plummeted and were almost cut'}, {'start': '705.040', 'end': '708.420', 'text': 'off in many countries, from urban to rural'}, {'start': '708.420', 'end': '711.660', 'text': 'areas, all faced difficult conditions.'}, {'start': '712.280', 'end': '716.320', 'text': 'This confusion led to a great historical downturn,'}, {'start': '716.680', 'end': '719.360', 'text': 'which had serious consequences for the U.S.'}, {'start': '719.640', 'end': '722.260', 'text': 'and spread to Europe for a decade.'}, {'start': '722.960', 'end': '724.360', 'text': 'Causes of the crisis.'}, {'start': '725.100', 'end': '729.940', 'text': 'In 1929, for every 100 Americans, one participated'}, {'start': '729.940', 'end': '731.020', 'text': 'in the stock market.'}, {'start': '731.760', 'end': '734.940', 'text': 'In addition, this system could not stand if'}, {'start': '734.940', 'end': '736.200', 'text': 'stock prices fell.'}, {'start': '736.980', 'end': '739.500', 'text': 'When a stock price fell, the stock company'}, {'start': '739.500', 'end': '742.020', 'text': 'asked its customers to pay an extra sum,'}, {'start': '742.660', 'end': '744.420', 'text': 'to compensate for the fall.'}, {'start': '745.160', 'end': '747.740', 'text': 'If the buyer could not pay, his stock'}, {'start': '747.740', 'end': '749.100', 'text': 'was pushed out of the market.'}, {'start': '750.080', 'end': '752.560', 'text': "That's what happened in the fall of 1929"}, {'start': '752.560', 'end': '754.100', 'text': 'on Wall Street.'}, {'start': '754.700', 'end': '758.520', 'text': 'Each economic sector has a different explanation for'}, {'start': '758.520', 'end': '760.720', 'text': 'the cause of the economic crisis.'}, {'start': '761.140', 'end': '764.680', 'text': 'According to the clothing sector, the cause came'}, {'start': '764.680', 'end': '768.220', 'text': 'from government intervention in the 1920s.'}, {'start': '768.980', 'end': '772.540', 'text': 'The ease in increasing credit, pushing banks to'}, {'start': '772.540', 'end': '775.280', 'text': 'pay interest, led to an explosion of money'}, {'start': '775.280', 'end': '778.720', 'text': 'supply just before the crisis, pushing the stock'}, {'start': '778.720', 'end': '780.580', 'text': 'market to explode.'}, {'start': '781.420', 'end': '784.500', 'text': 'When the stock market fell, it followed the'}, {'start': '784.500', 'end': '788.600', 'text': 'trend of financial bonds due to unrequited bad'}, {'start': '788.600', 'end': '789.160', 'text': 'debts.'}, {'start': '789.700', 'end': '793.480', 'text': 'According to the Marxist sector, the economic crisis'}, {'start': '793.480', 'end': '798.400', 'text': 'stemmed from the continuous expansion of investment, leading'}, {'start': '798.400', 'end': '800.600', 'text': 'to a loss of supply balance.'}, {'start': '801.480', 'end': '804.600', 'text': 'Thus, the capital economy did not regulate its'}, {'start': '804.600', 'end': '807.600', 'text': 'resources reasonably, leading to a crisis.'}, {'start': '808.140', 'end': '811.640', 'text': 'According to the monetarist economic sector, the crisis'}, {'start': '811.640', 'end': '813.460', 'text': 'was due to the tightness of the money'}, {'start': '813.460', 'end': '817.960', 'text': 'supply in 1930, and the Federal Reserve used'}, {'start': '817.960', 'end': '821.580', 'text': 'the wrong monetary policy and imposed laws to'}, {'start': '821.580', 'end': '824.620', 'text': 'increase the money supply instead of reducing it.'}, {'start': '825.040', 'end': '828.480', 'text': 'Solutions and recovery from the Great Depression.'}, {'start': '828.980', 'end': '832.180', 'text': 'At first, the government tried to regain market'}, {'start': '832.180', 'end': '835.080', 'text': 'trust with promises made by President Herbert Hoover,'}, {'start': '835.640', 'end': '839.040', 'text': 'the 31st President of the United States, by'}, {'start': '839.040', 'end': '842.060', 'text': 'convincing the public that the economy was still'}, {'start': '842.060', 'end': '842.600', 'text': 'stable.'}, {'start': '843.420', 'end': '847.460', 'text': 'However, at this time, the stock market continued'}, {'start': '847.460', 'end': '848.240', 'text': 'to collapse.'}, {'start': '849.240', 'end': '851.140', 'text': 'Thousands of banks went bankrupt.'}, {'start': '851.920', 'end': '854.680', 'text': 'People were evicted from their homes when banks'}, {'start': '854.680', 'end': '857.300', 'text': 'withdrew loans because their homes were locked up'}, {'start': '857.300', 'end': '859.860', 'text': 'to borrow money from the stock market.'}, {'start': '860.440', 'end': '863.240', 'text': 'Everything only changed after President Franklin D.'}, {'start': '863.380', 'end': '867.560', 'text': 'Roosevelt became president in 1932, and a year'}, {'start': '867.560', 'end': '871.740', 'text': 'later, he adopted a new economic policy, the'}, {'start': '871.740', 'end': '875.260', 'text': 'New Deal, to solve the problems caused by'}, {'start': '875.260', 'end': '876.120', 'text': 'the Great Depression.'}, {'start': '876.780', 'end': '879.500', 'text': 'The New Deal policy was actually a series'}, {'start': '879.500', 'end': '883.040', 'text': 'of laws mainly intended to ease the situation'}, {'start': '883.040', 'end': '886.920', 'text': 'of poverty, support banks, and protect the savings'}, {'start': '886.920', 'end': '888.000', 'text': 'of depositors.'}, {'start': '888.900', 'end': '892.620', 'text': 'In addition, agricultural products were also supported.'}, {'start': '893.500', 'end': '896.340', 'text': 'The minimum wage system was applied, and a'}, {'start': '896.340', 'end': '900.140', 'text': 'large construction program was launched to create jobs.'}, {'start': '900.680', 'end': '903.520', 'text': 'However, his government did not have much success'}, {'start': '903.520', 'end': '908.440', 'text': 'in restoring economic growth, and consumer confidence remained'}, {'start': '908.440', 'end': '908.980', 'text': 'low.'}, {'start': '909.820', 'end': '913.880', 'text': 'Clearly, reform needed to be introduced, and removing'}, {'start': '913.880', 'end': '916.560', 'text': 'risk from the system was the first step.'}, {'start': '917.300', 'end': '919.760', 'text': 'In the short term, this step was carried'}, {'start': '919.760', 'end': '924.360', 'text': 'out by investing $1 billion in more than'}, {'start': '924.360', 'end': '926.680', 'text': '6,000 surviving banks.'}, {'start': '927.080', 'end': '931.140', 'text': 'Among the 14,000 banks that existed before,'}, {'start': '931.640', 'end': '934.700', 'text': 'future risks were controlled by new laws.'}, {'start': '935.600', 'end': '938.360', 'text': 'The Glass-Steagall Act was born to separate'}, {'start': '938.360', 'end': '941.780', 'text': 'banking activities from the stock market and allow'}, {'start': '941.780', 'end': '944.100', 'text': 'more power to control banks.'}, {'start': '944.920', 'end': '948.200', 'text': 'A new agency was established on January 1,'}, {'start': '948.660', 'end': '952.220', 'text': '1934, to deal with the phenomenon of money'}, {'start': '952.220', 'end': '952.820', 'text': 'laundering.'}, {'start': '953.560', 'end': '957.700', 'text': 'It was the Federal Deposit Insurance Corporation, FDIC.'}, {'start': '958.460', 'end': '962.680', 'text': "By protecting 2,500 of each customer's money,"}, {'start': '963.300', 'end': '966.380', 'text': 'this agency had the task of reducing costs'}, {'start': '966.380', 'end': '968.340', 'text': 'if a bank went bankrupt.'}, {'start': '969.360', 'end': '972.140', 'text': 'Limiting the debt of depositors would protect income,'}, {'start': '972.740', 'end': '975.580', 'text': 'savings, and purchasing power of the economy.'}, {'start': '976.320', 'end': '980.420', 'text': 'And because depositors could trust the FDIC, they'}, {'start': '980.420', 'end': '983.620', 'text': 'would not arrange mass withdrawals if there was'}, {'start': '983.620', 'end': '984.120', 'text': 'a problem.'}, {'start': '984.980', 'end': '989.660', 'text': 'According to economic experts, this protection policy was'}, {'start': '989.660', 'end': '994.260', 'text': 'the first difference between the 1929 crisis and'}, {'start': '994.260', 'end': '995.300', 'text': 'current crises.'}, {'start': '996.100', 'end': '998.740', 'text': 'The second big difference lay in the role'}, {'start': '998.740', 'end': '1000.980', 'text': 'of governments in solving the crisis.'}, {'start': '1001.860', 'end': '1005.400', 'text': 'In 1929, the country was not at all'}, {'start': '1005.400', 'end': '1007.620', 'text': 'able to pump a large amount of cash'}, {'start': '1007.620', 'end': '1010.540', 'text': 'into the financial system when it was threatened'}, {'start': '1010.540', 'end': '1011.440', 'text': 'with collapse.'}, {'start': '1012.500', 'end': '1015.980', 'text': 'President Roosevelt led a federal government that accounted'}, {'start': '1015.980', 'end': '1018.660', 'text': 'for only 10 percent of U.S. GDP.'}, {'start': '1019.540', 'end': '1023.700', 'text': 'When the Great Crisis occurred in 2008, the'}, {'start': '1023.700', 'end': '1026.599', 'text': 'U.S. government at that time pointed out'}, {'start': '1026.599', 'end': '1029.640', 'text': 'that up to 40 percent of GDP could'}, {'start': '1029.640', 'end': '1031.420', 'text': 'be easily intervened.'}, {'start': '1031.460', 'end': '1034.400', 'text': 'Until the beginning of World War II, when'}, {'start': '1034.400', 'end': '1037.839', 'text': 'the U.S. government applied Keynesian economic theory,'}, {'start': '1038.339', 'end': '1041.119', 'text': 'with the main focus on emphasizing the role'}, {'start': '1041.119', 'end': '1045.140', 'text': 'of increasing wages to increase aggregate demand and'}, {'start': '1045.140', 'end': '1046.940', 'text': 'the role of the state in managing the'}, {'start': '1046.940', 'end': '1050.060', 'text': 'economy, the economy was restored.'}, {'start': '1050.860', 'end': '1054.220', 'text': 'It was not until 1939 that U.S.'}, {'start': '1054.600', 'end': '1058.940', 'text': 'GDP was restored to the level before the'}, {'start': '1058.940', 'end': '1059.660', 'text': 'Great Depression.'}, {'start': '1060.180', 'end': '1062.980', 'text': 'Many people think that World War II ended'}, {'start': '1062.980', 'end': '1066.480', 'text': 'the Great Depression, not the new economic policy.'}, {'start': '1067.140', 'end': '1069.180', 'text': 'But many others think that if Roosevelt had'}, {'start': '1069.180', 'end': '1071.840', 'text': 'allocated a lot for the new economic policy,'}, {'start': '1072.240', 'end': '1073.940', 'text': 'like what he did in World War II,'}, {'start': '1073.940', 'end': '1077.440', 'text': 'his policy would have ended the Great Depression.'}, {'start': '1077.980', 'end': '1080.960', 'text': 'Legacy and lessons from the Great Depression.'}, {'start': '1081.500', 'end': '1084.900', 'text': 'After the worst time, finally everything began to'}, {'start': '1084.900', 'end': '1085.400', 'text': 'improve.'}, {'start': '1086.080', 'end': '1088.620', 'text': 'More than 70 years later, the story of'}, {'start': '1088.620', 'end': '1090.740', 'text': 'bankrupt banks has become the past.'}, {'start': '1091.340', 'end': '1094.040', 'text': 'But the legacy of the Great Depression is'}, {'start': '1094.040', 'end': '1097.040', 'text': 'that nearly 11,000 banks went bankrupt in'}, {'start': '1097.040', 'end': '1101.040', 'text': 'the period of 1929-1933, with the money'}, {'start': '1101.040', 'end': '1103.820', 'text': 'supply reduced by more than 30 percent.'}, {'start': '1104.460', 'end': '1107.240', 'text': 'The unemployment rate was only 3.2 percent'}, {'start': '1107.240', 'end': '1109.980', 'text': 'the night before the crisis, which increased by'}, {'start': '1109.980', 'end': '1112.480', 'text': 'more than 25 percent at that time and'}, {'start': '1112.480', 'end': '1114.780', 'text': 'could not return to the low level as'}, {'start': '1114.780', 'end': '1117.060', 'text': 'before until the early 1940s.'}, {'start': '1117.320', 'end': '1120.080', 'text': 'And it took more than 25 years for'}, {'start': '1120.080', 'end': '1122.800', 'text': 'the Dow Jones to return to the peak'}, {'start': '1122.800', 'end': '1125.040', 'text': 'it had reached in 1929.'}, {'start': '1125.740', 'end': '1129.440', 'text': 'Until now, the world economy has experienced many'}, {'start': '1129.440', 'end': '1130.440', 'text': 'ups and downs.'}, {'start': '1131.180', 'end': '1133.960', 'text': 'But the special thing is that no common'}, {'start': '1133.960', 'end': '1136.160', 'text': 'formula has been drawn out.'}, {'start': '1137.020', 'end': '1140.120', 'text': 'The evidence is that at some point, the'}, {'start': '1140.120', 'end': '1143.380', 'text': 'ghost of the crisis reappeared through some of'}, {'start': '1143.380', 'end': '1146.740', 'text': 'the worst signs happening in the biggest economies,'}, {'start': '1147.500', 'end': '1152.280', 'text': 'with strange signals in money, securities, and oil.'}, {'start': '1152.820', 'end': '1155.020', 'text': 'Many years have passed since the day of'}, {'start': '1155.020', 'end': '1157.840', 'text': 'the crisis, but it still leaves a valuable'}, {'start': '1157.840', 'end': '1160.800', 'text': 'lesson for Americans every time they remember.'}, {'start': '1161.860', 'end': '1163.660', 'text': 'In a country where from the poor to'}, {'start': '1163.660', 'end': '1167.720', 'text': 'the producers, businessmen and businesswomen all want to'}, {'start': '1167.720', 'end': '1170.320', 'text': 'participate in the stock market with the hope'}, {'start': '1170.320', 'end': '1171.640', 'text': 'of becoming rich quickly.'}, {'start': '1172.380', 'end': '1175.320', 'text': 'That is the sign of the upcoming economic'}, {'start': '1175.320', 'end': '1175.840', 'text': 'boom.'}, {'start': '1176.460', 'end': '1178.840', 'text': 'The Great Depression in the context of world'}, {'start': '1178.840', 'end': '1179.340', 'text': 'history.'}, {'start': '1179.940', 'end': '1182.360', 'text': 'The Great Depression was not just an economic'}, {'start': '1182.360', 'end': '1187.100', 'text': 'crisis, but a historical event that fundamentally changed'}, {'start': '1187.100', 'end': '1189.000', 'text': 'how the world operated.'}, {'start': '1189.740', 'end': '1194.120', 'text': 'Before the Great Depression, economies largely operated on'}, {'start': '1194.120', 'end': '1197.860', 'text': 'free market principles with minimal government intervention.'}, {'start': '1198.900', 'end': '1202.160', 'text': 'However, the failure of the free market to'}, {'start': '1202.160', 'end': '1205.680', 'text': 'prevent and remedy the crisis led to a'}, {'start': '1205.680', 'end': '1210.720', 'text': 'new era of Keynesian economics and government intervention.'}, {'start': '1211.520', 'end': '1215.240', 'text': 'In Europe, the economic and social instability caused'}, {'start': '1215.240', 'end': '1217.940', 'text': 'by the Great Depression contributed to the rise'}, {'start': '1217.940', 'end': '1219.480', 'text': 'of dictatorial regimes.'}, {'start': '1220.380', 'end': '1223.380', 'text': 'In Germany, Adolf Hitler and the Nazi Party'}, {'start': '1223.380', 'end': '1228.000', 'text': 'exploited economic discontent to seize power in 1933.'}, {'start': '1229.120', 'end': '1232.940', 'text': 'In Italy, Benito Mussolini consolidated his power.'}, {'start': '1233.720', 'end': '1235.780', 'text': 'The rise of fascism in Europe was one'}, {'start': '1235.780', 'end': '1238.700', 'text': 'of the indirect consequences of the Great Depression'}, {'start': '1238.700', 'end': '1242.300', 'text': 'and ultimately contributed to World War II.'}, {'start': '1242.860', 'end': '1245.740', 'text': 'In the United States, the Great Depression brought'}, {'start': '1245.740', 'end': '1249.920', 'text': 'not only economic changes, but also social and'}, {'start': '1249.920', 'end': '1250.900', 'text': 'cultural ones.'}, {'start': '1251.440', 'end': '1256.780', 'text': "It changed Americans' attitudes towards saving, spending and"}, {'start': '1256.780', 'end': '1257.280', 'text': 'debt.'}, {'start': '1257.960', 'end': '1260.760', 'text': 'The generation that lived through the Great Depression'}, {'start': '1260.760', 'end': '1265.460', 'text': 'became famous for their frugality and caution, a'}, {'start': '1265.460', 'end': '1268.140', 'text': 'direct response to the hardships they had endured.'}, {'start': '1269.080', 'end': '1271.900', 'text': 'These values were passed down to later generations'}, {'start': '1271.900', 'end': '1276.600', 'text': 'and continued to influence American society for decades'}, {'start': '1276.600', 'end': '1277.280', 'text': 'afterward.'}, {'start': '1277.940', 'end': '1281.940', 'text': 'Comparison with other economic crises When comparing the'}, {'start': '1281.940', 'end': '1285.140', 'text': 'Great Depression with other economic crises in history,'}, {'start': '1285.680', 'end': '1288.160', 'text': 'we can clearly see its severity.'}, {'start': '1289.000', 'end': '1293.100', 'text': 'The Great Recession of 2008, considered the largest'}, {'start': '1293.100', 'end': '1297.100', 'text': 'financial crisis since the Great Depression, had some'}, {'start': '1297.100', 'end': '1301.160', 'text': 'similarities but also many important differences.'}, {'start': '1301.860', 'end': '1304.960', 'text': 'Both crises began in the U.S. financial'}, {'start': '1304.960', 'end': '1307.140', 'text': 'markets and quickly spread globally.'}, {'start': '1307.780', 'end': '1311.220', 'text': 'However, while the Great Depression lasted nearly a'}, {'start': '1311.220', 'end': '1314.160', 'text': 'decade and led to unemployment rates of up'}, {'start': '1314.160', 'end': '1318.860', 'text': 'to 25%, the Great Recession of 2008 lasted'}, {'start': '1318.860', 'end': '1322.060', 'text': 'about 18 months, with peak unemployment rates of'}, {'start': '1322.060', 'end': '1325.000', 'text': 'around 10% in the U.S. This'}, {'start': '1325.000', 'end': '1327.800', 'text': 'difference can largely be explained by the economic'}, {'start': '1327.800', 'end': '1329.960', 'text': 'lessons learned from the Great Depression.'}, {'start': '1330.660', 'end': '1334.820', 'text': 'During the Great Recession of 2008, central banks'}, {'start': '1334.820', 'end': '1338.940', 'text': 'and governments responded quickly with fiscal and monetary'}, {'start': '1338.940', 'end': '1340.000', 'text': 'stimulus measures.'}, {'start': '1340.720', 'end': '1343.800', 'text': 'The Federal Reserve lowered interest rates to near'}, {'start': '1343.800', 'end': '1348.540', 'text': 'zero and conducted large-scale asset purchase programs.'}, {'start': '1349.420', 'end': '1352.760', 'text': 'Governments pumped trillions of dollars into the economy'}, {'start': '1352.760', 'end': '1356.640', 'text': 'to prevent collapse or further economic contraction.'}, {'start': '1357.360', 'end': '1361.340', 'text': 'These actions reflect lessons learned from the mistakes'}, {'start': '1361.340', 'end': '1365.380', 'text': 'of policymakers during the Great Depression, when they'}, {'start': '1365.380', 'end': '1370.280', 'text': 'tightened monetary policy and cut public spending during'}, {'start': '1370.280', 'end': '1371.180', 'text': 'the downturn.'}, {'start': '1371.180', 'end': '1376.480', 'text': 'The Asian financial crisis of 1997 also provides'}, {'start': '1376.480', 'end': '1378.760', 'text': 'an interesting point of comparison.'}, {'start': '1379.720', 'end': '1383.400', 'text': 'Although severe in several countries, this crisis did'}, {'start': '1383.400', 'end': '1385.740', 'text': 'not have the global scope of the Great'}, {'start': '1385.740', 'end': '1386.240', 'text': 'Depression.'}, {'start': '1386.900', 'end': '1389.160', 'text': 'It began with the collapse of the Thai'}, {'start': '1389.160', 'end': '1392.540', 'text': 'Baht and quickly spread to regional economies.'}, {'start': '1393.040', 'end': '1396.760', 'text': 'But developed economies were largely not directly affected.'}, {'start': '1397.420', 'end': '1401.100', 'text': 'The inflation crises of the 1970s represent a'}, {'start': '1401.100', 'end': '1404.800', 'text': 'different type of economic crisis, characterized by a'}, {'start': '1404.800', 'end': '1409.020', 'text': 'combination of slow economic growth and high inflation,'}, {'start': '1409.680', 'end': '1411.960', 'text': 'a phenomenon called stagflation.'}, {'start': '1412.840', 'end': '1416.320', 'text': 'Although causing many difficulties, it did not lead'}, {'start': '1416.320', 'end': '1418.980', 'text': 'to high unemployment rates or the collapse of'}, {'start': '1418.980', 'end': '1421.340', 'text': 'the banking system like the Great Depression.'}, {'start': '1422.020', 'end': '1423.440', 'text': 'Lessons for the future.'}, {'start': '1423.940', 'end': '1426.740', 'text': 'The Great Depression left many valuable lessons for'}, {'start': '1426.740', 'end': '1429.220', 'text': "today's policymakers and economists."}, {'start': '1429.980', 'end': '1433.060', 'text': 'One of the most important lessons is the'}, {'start': '1433.060', 'end': '1437.140', 'text': 'role of government and central banks in stabilizing'}, {'start': '1437.140', 'end': '1439.940', 'text': 'the economy during times of crisis.'}, {'start': '1440.740', 'end': '1444.140', 'text': "Instead of letting the market self-adjust, today's"}, {'start': '1444.140', 'end': '1447.780', 'text': 'policymakers are often ready to intervene to prevent'}, {'start': '1447.780', 'end': '1449.760', 'text': 'a more serious downturn.'}, {'start': '1450.380', 'end': '1453.560', 'text': 'Another lesson is the importance of maintaining the'}, {'start': '1453.560', 'end': '1455.620', 'text': 'stability of the financial system.'}, {'start': '1456.320', 'end': '1459.860', 'text': 'Regulations such as the Glass-Steagall Act helped'}, {'start': '1459.860', 'end': '1462.840', 'text': 'create a more stable banking system for decades.'}, {'start': '1463.580', 'end': '1466.900', 'text': 'When these regulations were loosened in the 1990s,'}, {'start': '1467.080', 'end': '1470.260', 'text': 'it contributed to the 2008 crisis.'}, {'start': '1471.520', 'end': '1475.240', 'text': 'After the Great Depression, the Federal Deposit Insurance'}, {'start': '1475.240', 'end': '1480.900', 'text': 'Corporation, FDIC, was established to protect bank deposits,'}, {'start': '1481.420', 'end': '1484.480', 'text': 'a protective measure that still exists today.'}, {'start': '1485.100', 'end': '1488.160', 'text': 'The Great Depression also emphasized the importance of'}, {'start': '1488.160', 'end': '1489.120', 'text': 'monetary policy.'}, {'start': '1490.120', 'end': '1492.320', 'text': 'The Fed learned from its mistakes during the'}, {'start': '1492.320', 'end': '1495.560', 'text': 'Great Depression and today applies the policy of'}, {'start': '1495.560', 'end': '1500.300', 'text': 'lender of last resort, providing liquidity to financial'}, {'start': '1500.300', 'end': '1503.400', 'text': 'institutions during times of crisis.'}, {'start': '1504.000', 'end': '1508.020', 'text': "The Fed's response to the 2008 crisis and"}, {'start': '1508.020', 'end': '1511.360', 'text': 'the COVID-19 pandemic reflects this lesson.'}, {'start': '1511.860', 'end': '1515.760', 'text': 'Finally, the Great Depression emphasized the importance of'}, {'start': '1515.760', 'end': '1519.520', 'text': 'international cooperation in dealing with economic crises.'}, {'start': '1520.380', 'end': '1524.120', 'text': 'In the 1930s, protectionist and beggar-thy-neighbor'}, {'start': '1524.120', 'end': '1527.020', 'text': 'policies exacerbated the crisis.'}, {'start': '1528.060', 'end': '1531.980', 'text': 'In contrast, in recent crises, we have seen'}, {'start': '1531.980', 'end': '1536.300', 'text': 'greater coordination between governments and central banks worldwide.'}, {'start': '1537.200', 'end': '1537.840', 'text': 'Conclusion.'}, {'start': '1538.500', 'end': '1542.980', 'text': 'The Great Depression of 1929 to 1939 remains'}, {'start': '1542.980', 'end': '1546.540', 'text': 'the most severe economic crisis in modern history.'}, {'start': '1547.240', 'end': '1550.580', 'text': 'It not only fundamentally changed how we understand'}, {'start': '1550.580', 'end': '1554.480', 'text': 'and manage economies, but also changed the social'}, {'start': '1554.480', 'end': '1557.000', 'text': 'and political structure of the world.'}, {'start': '1557.620', 'end': '1560.620', 'text': 'From the ruins of the Great Depression, a'}, {'start': '1560.620', 'end': '1564.240', 'text': 'new economic order emerged, one that would shape'}, {'start': '1564.240', 'end': '1566.500', 'text': 'the world for the rest of the 20th'}, {'start': '1566.500', 'end': '1568.260', 'text': 'century and beyond.'}, {'start': '1568.840', 'end': '1571.740', 'text': 'The lessons from the Great Depression continue to'}, {'start': '1571.740', 'end': '1573.900', 'text': 'shape economic policy to this day.'}, {'start': '1574.720', 'end': '1578.340', 'text': 'We have seen how modern policymakers have applied'}, {'start': '1578.340', 'end': '1581.780', 'text': 'these lessons in their responses to later crises.'}, {'start': '1582.720', 'end': '1586.820', 'text': 'However, each new crisis also presents its own'}, {'start': '1586.820', 'end': '1589.700', 'text': 'unique challenges and lessons.'}, {'start': '1590.160', 'end': '1592.840', 'text': 'As we look ahead, it is important to'}, {'start': '1592.840', 'end': '1596.480', 'text': 'remember the lessons from the past while still'}, {'start': '1596.480', 'end': '1600.140', 'text': 'being ready to adapt to changing circumstances.'}, {'start': '1601.100', 'end': '1605.400', 'text': 'Hopefully, by doing so, we can avoid economic'}, {'start': '1605.400', 'end': '1608.940', 'text': 'disasters of similar magnitude to the Great Depression'}, {'start': '1608.940', 'end': '1609.940', 'text': 'in the future.'}, {'start': '1610.500', 'end': '1613.660', 'text': 'Through our study of the Great Depression, the'}, {'start': '1613.660', 'end': '1617.340', 'text': 'Real Icons channel hopes to have provided you'}, {'start': '1617.340', 'end': '1619.700', 'text': 'with a comprehensive view of one of the'}, {'start': '1619.700', 'end': '1623.640', 'text': 'most formative events in modern economic history.'}, {'start': '1624.560', 'end': '1627.660', 'text': 'For more about other important historical events that'}, {'start': '1627.660', 'end': '1629.720', 'text': 'have shaped the world we live in today,'}, {'start': '1630.220', 'end': '1633.320', 'text': 'follow our channel to watch future videos.'}]