Comparison Between 1929-1933 Crisis and 2008-2010 Crisis
Comparison between 1929-1933 crisis and 2008-2010 crisis
Being aware of the fact that a company is the result of various factors, and one of the most important factors is the environment in which the company functions we will make a short analysis of two compared periods. The economic crisis from 1929-1933: The crisis started in 1929 in USA, and manifested in its initial phase as the crash from the Wall Street. Two moments that have marked the evolution of this crisis were the black Thursday(24.10.1929) when the fellow trend transformed from an ascending one into a decreasing one and the second one was the black Tuesday when all the grow up of the stock market from the last year was stopped. The stock market crisis created a financial crisis, a lot of banks going bankrupt, the industrial production decreased fast and the unemployment increased. This crisis is considered an overproduction one, the overproduction being one of the most important factors that generated it. In Romania the crisis was similar to the one from US the country being in a modernization process, the population especially the peasants who had loans for the agriculture modernization could not pay them anymore. In Romania the appearance of the crisis is a consequence of the national economic system connections with the worldwide economy. The effects in Romania manifested like a powerful decrease of the production in the metallurgical industry (iron, steel, etc), mining industry (coal, salt, etc) and agricultural industry. The banking system was faced with some major bankruptcies like: the bankruptcy of The General Bank of the Romanian Country, the Bercovits Bank and Marmorosch Blank Bank. At the level of the population the crisis consisted in collective redundancies, decreases of the purchasing power and of its general poverty. The state budget remained deficit for 3 consecutive years and the state tried to cover it by rising the taxation and taking recovery
Being aware of the fact that a company is the result of various factors, and one of the most important factors is the environment in which the company functions we will make a short analysis of two compared periods. The economic crisis from 1929-1933: The crisis started in 1929 in USA, and manifested in its initial phase as the crash from the Wall Street. Two moments that have marked the evolution of this crisis were the black Thursday(24.10.1929) when the fellow trend transformed from an ascending one into a decreasing one and the second one was the black Tuesday when all the grow up of the stock market from the last year was stopped. The stock market crisis created a financial crisis, a lot of banks going bankrupt, the industrial production decreased fast and the unemployment increased. This crisis is considered an overproduction one, the overproduction being one of the most important factors that generated it. In Romania the crisis was similar to the one from US the country being in a modernization process, the population especially the peasants who had loans for the agriculture modernization could not pay them anymore. In Romania the appearance of the crisis is a consequence of the national economic system connections with the worldwide economy. The effects in Romania manifested like a powerful decrease of the production in the metallurgical industry (iron, steel, etc), mining industry (coal, salt, etc) and agricultural industry. The banking system was faced with some major bankruptcies like: the bankruptcy of The General Bank of the Romanian Country, the Bercovits Bank and Marmorosch Blank Bank. At the level of the population the crisis consisted in collective redundancies, decreases of the purchasing power and of its general poverty. The state budget remained deficit for 3 consecutive years and the state tried to cover it by rising the taxation and taking recovery
Bibliography: 1. www.wallstreet.ro 2. www.money.ro 3. www.nestle.ro 4. http://bloguri.dailybusiness.ro 5. www.nestle.com 6. Muresan M., Muresan D., - The history of Economy, Economica Publishing House, Bucuresti, 1998; 7. The National Institute of statistics – Statistical Analysis;