2.      When the economic downturn occurred, people were fear of losing all their money, they rushed to the bank to withdraw their savings, but the banks were short of cash and consequently shutdown of banks were caused and millions of accounts were distinguished.

3.      This dark economic time of The United States had led to many consequences during this 10 years, including poverty, unemployment that was getting worse throughout the crash, declining production by farms, etc. It had caused so many impacts to the people’s lives.

4.      The Great Depression was ended when Franklin D. Roosevelt was elected as the new president and the New Deal was signed into law which was designed to create jobs, allow unionization and provide unemployment insurance.

As a conclusion, money is so significant and economy crisis is so horrible that it can affect people’s lives. All of us should learn from the mistakes from the past and never make them again to promise a better future.

 

2.      The first step of the Soviet model, the implementation of large-scale development of the Communist Party of China reform, half of the national arable land affected, there are 3 million poor peasants get profits. From 1949 to 1950 when the Land Reform was initiated. Were assigned a piece of land. After that had a good life for 2 years. The year of 1950 was still hard. But from 1951 to 1952 the peasants had a good life. They grew grain on their own land had enough food. That was before the state’s monopoly of the grain market.

 

3.      November 1957, Mao return to Moscow, but his long-time ally became his main rival, and when Nikita Khrushchew declared that Soviet economic production would exceed the United States in 15 years, Mao was challenged. He said that China's steel production will also exceed UK in 15 years. In the spring of 1959, Mao came another form of arrogance, the great helmsman in the next three years to produce one million tons of steel, due to the lack of iron and steel production, farmers are also very hard to contribute, they do their best make a small blast furnace. Nominally, China began to produce millions of tons of steel, but in fact, all produced are not used metal. At the end, tens millions of farmers non stop working for days and nights and at last it turned out it was a useless work. This is the mysterious progress indicator in the socialist world. The consequence is that the farmer really works to die. This is part of Mao’s strategy, and he thinks it is worth paying the cost of sacrificing the countryside in order to keep the city, industrial and political center.

 

4.      The distance between paddy seedlings, the type of seeds, the amount of fertilizer used. Apply to a crop of land, plant another crop. All the decision make by leadership and the leadership is ignorant, at the end it caused all farmers completely discouraged. The poor harvest caused the first shortfall, but Mao asked for more. In order to increase the agricultural production he asked the commune to compete with each other, the party awarded the ceremony to the most recorded people's communes, and the people's commune residents are a serious lack of food. Commune taxes paid on cereals are based on false numbers, and the real harvest of a region is almost entirely taken by the state. Even worse, the spring of 1959 was a disaster. That well-known debt, has been ready to use, China has buy hundreds of factories from Soviet Union. Mao asked to speed up repayment, although it meant that people in the rural would go hungry.

2.     This video also shows us that although some of the value of money is very big like billion or million, the actual value still very small. This is because the supply of money is unlimited.

3.    During the war, there are hyperinflation happened. The value of the money dropped until the people burn the money to keep them warm. They felt that keep them warm are more worthy. This shows us that money is no value on that time due to the demand of money decreases.

4.     In some countries, the sellers increase the price of the item, actually it does not work cause the value of money too low. 

THE  GREAT DEPRESSION (1929-1939)

From the video, USA had faced the massive economic crisis. It happened because of the collapsed of the New York stockmarket. 

 People got depress, worried and struggle to survive for their live. This is because, from time to time money that people hold is decreasing. 

Also, they are facing the crisis which are unemployement and out of stock. They sold their house just to survive during that time.

People went to the bank to withdraw the money the bank has no money. Many banks had shut down because of no money left in it.

This crisis can be solved by electing new president to lead the way out of it. For example, Franklin D. Roosevelt was elected as the new president. But, in solving the problem, it takes time and it not impossible that the depression are not gone.

 

2. Money is very important to make a payment. It is used as the medium of exchange, a unit of account and a store of value. When the stock market clash, unemployment increase and buying power decreased. To survive, many Americans forced to sell everything they have such as car, wedding ring or to buy on credit which fell into debt.

3. Bank creates money by making a loan. When the stock market fell, the brokers called in their loans.  There were no way to stop the banks of investing their customers' deposits. This cause the bank wiped out and short of cash. Its effect a lot of people lost their entire life’s savings. This depression was causing a lot of life to lose. For example, George Kelly hung himself in despair when he realised that he can’t get back the money he spent 40 years to save.

4. Federal Rerserve System is a central bank that influences the quantity of money. In 1931, Fed sold US dollar and bought gold. To preserve the US dollar's value, Fed raised interest rates again.This decrease the supply of money. More bankruptcies followed, millions of people out of work.

5. Lastly, I am glad that “New Deal” is designed to end the Great Depression. It provided jobs to the unemployment, helping them to increase their buying power and standard living. Although it may no help some people, it still vital for giving hope.

1. The Great Chinese Famine was a result of poor policy. Great ideas doesn’t mean great intentions. Private farmlands were converted into collectives, with no personal wealth in place. The idea of providing food stamp, is merely difficult to ensure every citizen is on the list, judging by the size of the nation. 

2.  The people should matter, not the person in charge.  Chairman Mao showed poor leadership by doing what he thinks is in the “best interest” for the people, laying off officials who were critical of his ideas. But in reality he was just holding on to his ego.

3.  Education is vital to nation’s development, citizens of that era had no personal opinion, or couldn’t have their own opinion. Blindly follow what was told without rationality is hazardous.

4. Communism never made sense. Pure control over something is just unenforceable.

 

 -Bank have to take risk if many people do not have money to pay for the high interest and the loan that they make. 

 

-Norway's government increased the salary and the salary keep raising rapidly in the past. The interest rate will be low. This is because the supply of the money increases in market. The price of bond increase due to increase in demand for bonds. 

- As we know, when inflation occur, the value of the money will be decrease. Many investors will stop invest money in the bank in order to avoid the loss. So, the supply of money will decrease and interest rate will increase. So, mostly people will stop borrowing from bank.

 

-Our economy will be getting worse if inflation happened. So we should do something in order to save our country’s economic.

 

 

1. The tragic of the “Wall Street Crash” brings a massive economic crisis to United States as it was the most serious stock market crash in the history of United States. Because of this tragic, the central bank of United States, the Federal Reserve System admonished the overly prediction, stocks were sold at a fast speed as mentioned.

 

2. The bank in United States were short of cash due the the economic crisis, the people in United States had a tough times because they could withdraw their own money through the bank and some of the saving accounts are wiped out. This increased the rate of unemployment and poverty of United States , and decreased the consumers spending due to the massive economic crisis.

 

3. The people in United States have a high demand for money because of their savings are gone and layoffs increasing. But the supply for money of the bank is very low, so the people in United States have to sell their assets such as cars, furniture and even wedding rings in order to survive through this economic crisis.

 

4. With the presence of the new president of the United States, President Franklin D. Roosevelt. He pushed Congress to create the social security program welfare for the poor and jobs for those unemployed. This program is called 2^nd hundred days and it improved American’s life, and improves banking system with the presence of centralized banking system.

1.       Based on what I have heard from the  video, inflation can cause a lot of trouble to the people. This is because, even though they have a lot of zero number behind the money, it actually  doesn’t have any value. Because of too many supply of money that being produce from the government (bank central) .

2.       Example, in German, the government keep on increased the salary of the people up to 2-5% and the will cause the supply of money increased and value of money decreased. Because of this, the German people use the extra money for the kids to play around and also heat themselves (burn the money). 

3.       In Zimbabwe, in 2007-2008 the money cost from 50 dollars to 500 thousands dollars. this inflation happen not during the war but within 20^th centuries. Because of government wanted to gain more wealth, they produce more and more money and the currency increase from billion into trillion. Although the amount was increase, but using the currency they have, which was billion only can costs them to buy a loaf of bread. But this wasn’t stop here, the current currency they have was 200 trillion dollars can afford them to buy 24 packs of beer and after 3 weeks, 200 trillion dollar only can cost them to buy 1 beers. This effect the people doing shopping, because the number keep on changing. 

4.       From the history, I’ve learn that inflation and hyperinflation can cause a lot of trouble to the people and also country. as the preparation, try to save gold in our saving accounts rather than paper money. And to the government, to control the money supply rather than produce money according to their desire. 

The Great Leap Forward planned to develop agriculture and industry.  Chairman Mao Zedong believed that both had to grow to allow the other to grow. Industry could only prosper if the work force was well fed, while the agricultural workers needed industry to produce the modern tools needed for modernisation. To allow for this, China was reformed into a series of communes.

1. Mao's policy of using a state monopoly on agriculture was mainly increase cash asset for the community and residents because had more financial support to let farmers develop their productivitiy. Besides, improvement in this will help increase GDP as well.

2. The quantity theory of money is the proposition that in the long run, an increase in the quantity of money brings an equal percentage in the price level. So they success grow their money and the price level from agriculture and industry.

3. Third, the excellent growing weather of 1958 was followed by a very poor growing year in 1959. 1960 had even worse weather than 1959. The harvest of 1960 was 144 million tons. 9 million people are thought to have starved to death in 1960 alone; many millions were left desperately ill as a result of a lack of food. This had caused they holding less money than the quantity demanded.

4. The government had to introduce rationing. This put people on the most minimal of food and between 1959 and 1962, it is thought that 20 million people died of starvation or diseases related to starvation. It was obvious that the Great Leap Forward had been a failure and even Mao admitted this. This was affect whole community which had stated than 30% fault of nature, 70% human error.

2.       Farmers having a difficult time when they defaulting on loans because of the bank failures.

3.       New York Stock Exchange crash, production had already declined and unemployment had risen leaving stocks in great excess of their real value. Other causes of stock market crash is low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated. Stock prices began to decline, investment companies and bankers attempted to stabilize market by buying great blocks of stock.

4.       The world war 2 begin, there are hyperinflation occurred. The value of money dropped, people are being paid for their work twice a day but the value of money dropped. These caused to many people starving during the hyperinflation.