Chapter 654 The Great Depression

As time goes by, it is no longer important whether there are other forces behind the stock market crash.

For the United States now, how to stabilize the economic order after the stock market crash and reduce the impact of the stock market crash on the national economy is the most important.

With the collapse of the stock market, the economy of various industries in the United States has fallen into a devastating disaster, and chain reactions are constantly occurring.

Whenever encountering such a disaster, the first thing people can think of is to withdraw their deposits from the bank to buy emergency items such as food and medical supplies.

Just the second day after the stock market crash, that is, July 15, the currency reserves of all banks in New York fell by more than 70 million US dollars, most of which were taken away by private depositors.

There are many banks in the United States, but most of them are small and medium-sized banks. The currency reserves of each branch are limited and cannot handle so many frequent withdrawals.

Obviously, after the stock market crash, the number of people who want to withdraw money is far greater than the number of people who want to deposit money. In addition, a large number of small banks cannot take out more money to return to these depositors, and the only fate they face is bankruptcy.

The wave of bankruptcies and bank runs caused the US banking industry to collapse in a short period of time. Not only those small banks, but also those famous American families, such as Morgan, Rockefeller, etc., their banks were also being withdrawn in large quantities.

Where did the money in the bank go? Banks must make money, and it is impossible for all the money to stay in the bank's vault.

Under normal operation, most of the bank's funds will be distributed as loans to those companies and individuals who need loans.

But in the context of the stock market crash, can those companies still take out funds to repay the bank? Obviously impossible.

Because of the evaporation of stock market value, a large amount of property has disappeared in an instant. This also directly broke the capital chain between banks and enterprises. Banks and enterprises face only one outcome, that is, they will be overwhelmed by the anger of the people after they cannot take out funds.

At this time, both large and small banks are in a panic, and such a crisis is enough to bankrupt large banks.

In order to stabilize the situation, some powerful banks can only urgently collect money from enterprises to ensure that their banks will not be in danger of bankruptcy.

Faced with the urgent collection of banks, small and medium-sized enterprises can only lay off employees to a greater extent and reduce their own expenses.

But this will also lead to waves of unemployment. Everyone has become a victim in this incident. Only a small number of people who knew the news in advance have survived.

In August, as reported by the US news, the latest number of unemployed people in the United States has reached 7 million, and more than 3 million households are facing food shortages.

On the streets and cities of the United States, people can be seen queuing up to receive relief food anytime and anywhere.

These people may have been white-collar workers, corporate employees, or technical workers before, but now they have become unemployed people who rely on relief food.

Such a large number of unemployed people directly caused the collapse of order in the United States. Since mid-July, the crime rate in cities across the United States has risen by 44.1%, and more than 2 million students have been forced to drop out of school because their families can no longer afford the expenses in school.

According to estimates by the US media, in the half month from the end of July to the beginning of August, the number of suicides in the United States has exceeded 300,000, and the number of people who starved to death is also around 200,000.

There have been waves of food grabbing in many cities. The food prices in various cities have doubled in half a month, but they are still in short supply.

Such a crisis is no longer an economic problem during the stock market crash. With various waves of unemployment, it has become a social problem that affects the foundation of the United States.

How to deal with nearly 10 million unemployed people, coupled with the food shortage of tens of millions of people, is a headache for the current President Coolidge.

In fact, the US government is really helpless about this. There are even many people in the government who believe that the market will automatically adjust, the current difficulties are only temporary, and the US economy will recover in the future.

But if you understand the harm of the Great Depression to the United States in history, you won’t say that. According to historical statistics, the US economy has been declining year by year since the Great Depression. In four years, the US GDP has plummeted by more than half, directly returning the US economy to decades ago.

In September 1932, Fortune magazine estimated that during the Great Depression, 34 million adult men, women and children in the United States had no income, close to 30% of the total US population.

More importantly, a large number of rural people are not included in the statistics. Although the rural population is the main producer of food, this does not mean that all rural people will hoard a large amount of food at home.

The U.S. government's relief target has never been rural people. After all, the rural area is wider and more scattered, and the U.S. government does not have much power to provide relief.

How great was the impact of the Great Depression on the United States?

According to some rumors in later generations, some people walked 900 miles (about 1,450 kilometers) to find a job, and some people stayed at the door of the employment agency all night just to find a job that could protect them.

Because of the large number of unemployed people, some positions for recruiting employees were robbed by the public.

A job agency on the streets of New York publicly recruited 30 people. As a result, on the day of the public recruitment, more than 7,000 people gathered on the street where the employment agency was located, which directly caused the employment agency to collapse.

What's worse, some people secretly set fires in the woods just to get the government to hire them as firefighters.

According to the estimates of American financial magazines, there are at least 10 million people in the United States who are looking for jobs, but there are very few companies that can provide jobs. More people are looking for jobs aimlessly and end up with nothing.

Such a tragic situation in the United States has naturally affected Europe.

Although the British government has made preparations in advance, the London stock market still collapsed like the United States.

The good news is that under the British government's advance prevention, the rise of the London stock market before the collapse was not as exaggerated as that of New York, and naturally it would not attract so many people to invest in the stock market. The number of people affected by the stock market collapse is also within an acceptable range.

More importantly, the British government has made preparations in advance to provide relief to the population and has also reserved a considerable amount of emergency food, at least it will not let the unemployed go hungry.

As time enters August, the number of unemployed people in various countries is constantly increasing.

A European newspaper has compiled data from various countries and listed a ranking of the number of unemployed people in various countries:

First place, the United States, the number of unemployed people is expected to be 7.5 million.

Second place, the United Kingdom, the number of unemployed people is expected to be 5 million.

Third place, Germany, with an estimated 4.4 million unemployed people.

Fourth place, France, with an estimated 3.5 million unemployed people.

Fifth place, the Austrian Empire, with an estimated 2.2 million unemployed people.

Sixth place, the island countries, with an estimated 2 million unemployed people.

Seventh place, Italy, with an estimated 1.1 million unemployed people.

Seventh place, Spain, with an estimated 550,000 unemployed people.

Eighth place, Tsarist Russia, with an estimated 500,000 unemployed people.

Ninth place, the Netherlands, with an estimated 400,000 unemployed people.

Tenth place, Portugal, with an estimated 200,000 unemployed people.

Where is Australasia?

This is the question of almost everyone after reading this news report. Because almost all the powers are on this list of unemployed people, except Australasia.

Logically speaking, Australasia has a population of 30 million, and its physique is highly similar to that of Europe and the United States, and should be within the scope of the impact.

Even the island countries, due to the large amount of assistance from the United States and American capital, are facing huge unemployment pressure and low income problems for the rural population in the impact of this economic crisis.

Although Australasia is far away from Europe and the United States, it should not be off the list. Even countries like the Netherlands and Portugal are on the list. How can Australasia, with its economic size at the level of a great power, not be affected?

In fact, Australasia's economy and stock market have indeed been affected, but the impact is basically negligible.

Even if you look more carefully, you can find that countries like Soviet Russia and the Republic of Turkey have basically not been affected much.

Australasia is behind the collapse of the New York stock market, and Arthur was also the first to prepare for the stock market crash.

Long before the New York stock market collapsed, Arthur instructed several of his consortiums to take precautions and asked the royal consortium to prepare enough funds to prevent people from making emergency withdrawals.

The good news is that Arthur's words are still quite effective in Australasia, and the people are not too panicked, and there is no run on the bank to withdraw money.

In this way, at least the banking industry is relatively stable. If the banking industry is stable, companies will not be too panicked and will not have to rush to reduce the number of employees and reduce expenses.

Under various factors, the unemployment rate in Australasia has not risen much, after all, the number of employees in the royal consortium is large.

Although some foreign companies have laid off some employees for their own costs and various reasons, these unemployed people were quickly taken in by other companies, and people at least don't have to worry about their unemployment risks.

Besides, if there are people who really can't find a job temporarily, the Royal Relief Committee and the government have also set up relief food collection points to prevent the unemployed from starving.

Under these factors, the number of unemployed people in Australasia has remained below 100,000, which is completely within the controllable range.

The number of unemployed people in Australasia has always been a public data, and it was soon reported abroad by European and American media.

In this way, the unemployed population of less than 100,000 instantly attracted the attention of the world, and Australasia naturally became a place of yearning in the minds of those unemployed people.

In fact, the Great Depression was also the time when the United States lost the most population. Historically, the Soviet Union was not affected by the Great Depression. The Soviet Union also attracted a large number of Americans and even Europeans at this time.

But now, this role has come to Australasia. A country that has not been greatly affected by the economic crisis and can even guarantee the income of its employees, isn't this a holy place in the hearts of those unemployed people?

But for those unemployed people, how to get a ticket to Australasia has become their biggest headache.

As the number of unemployed people in the United States continues to increase, a large number of Americans choose to go to Europe or other regions to survive.

This has also caused the price of ocean-going ship tickets to rise again and again. Originally, it was 15 US dollars to go to Europe, but now the price has risen to more than 50 US dollars.

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