Great depression

[1] Beginning in 1929 and lasting for about a decade, the Great Depression was an economic crisis on a global scale. It started in the USA, but it quickly spread to countries throughout the world. The causes of the Great Depression were complex, and to this day economists have not been able to explain them thoroughly.

[2] During the mid-to-late 1920s, many people had invested their money in stocks in companies. For a few years, the value of stocks rose rapidly, making money for the investors. This encouraged people to buy more shares in the hope of making even greater profits. In September 1929, however, stock prices began to fall, and on October 29, the complete collapse of the stock market began. At that day – known ever since as Black Tuesday – more than 16 million shares were sold. The value of most shares fell sharply, leaving financial ruin and panic in its wake¹. There had been financial panics before, and there have been some since, but never a collapse in the stock market had such a devastating and long-term effect that followed the 1929 market crash. Many people who had invested in stocks lost everything they owned. Businesses closed, putting millions out of work. Banks failed by the hundreds. Wages for those still fortunate enough to have work fell sharply. The value of money decreased as the demand for goods declined.

[3] Since the U.S. was the major creditor and financier of postwar Europe, the U.S. financial collapse led to collapses of other economies, especially those of Germany and Britain. Nations tried to protect domestic production by imposing tariffs and quotas, reducing international trade by more than half. This only made matters worse.

[4] By 1932, United States industrial output had been cut in half. Stock values had accounted for about 20% of their previous value. About 11,000 of the U.S.'s 25,000 banks had failed. More than 90,000 businesses closed down. One fourth of the labor force – about 15 million people – was out of work, and there was no such thing as unemployment insurance. The people who managed to keep their jobs were paid only about half of what they had received before. A serious drought in the Great Plains made things even worse, especially for farmers. Prices for agricultural products dropped to their lowest level since the Civil War.

[5] Statistics, however, cannot tell the story of the extraordinary hardships the masses of people endured. Such massive poverty and hunger had never been known in the United States before. Former millionaires stood on street corners, trying to sell apples at 5 cents apiece. Hundreds of pitiful shantytowns² – called Hoovervilles “in honor” of the unfortunate Republican president who presided over the disaster³ – sprang up all over the country to shelter the homeless. Many people slept under ‘Hoover blankets’ – old newspapers – in the out-of-doors. In 1931 alone, more than 20,000 Americans committed suicide.

For anyone with money, depression America was a paradise – a new house could be bought for less than $3,000; a man's suit cost about $10, a shirt less than 50 cents.; milk was 10 cents a quart (=0,95 liter), a loaf of bread a nickel (=5 cents). But not many people had much money to spend after paying rent and buying food.

[6] The Great Depression contributed to political upheaval⁴. Franklin D. Roosevelt won the U.S. presidential election in 1932 by promising to help millions of Americans hit hard by the Great Depression. To recover the economy of the country, the new president immediately put into action a plan known as the New Deal⁵. It combined state regulation of economy and reforms in social sphere.

In the United States, the end of the depression came only with the beginning of a new world crisis – World War II. After the outbreak of war in Europe in 1939, U.S. factories were flooded with orders for weapons and ammunition. The growth in manufacturing led to a rapid drop in unemployment. The depression ended completely soon after the United States entered the war in 1941.

Notes: 1) to leave smth. in its wake – оставлять за собой что-л.

2) shantytown – посёлок, застроенный бараками

3) who presided over the disaster – кто во время катастрофы стоял у власти

4) political upheaval – политический переворот

5) New Deal – “Новый курс” ["новый подход", система экономических реформ президента Ф. Рузвельта, направленная на преодоление Великой Депрессии]

Упр.10. Перепишите и письменно переведите 1 и 2 абзацы текста.

Упр.11. Ответьте на поставленные вопросы, выбрав правильный вариант(ы).

1) How long did the Great Depression last?

a) about 8 years

b) about 10 years

c) about 12 years

2) What did the stock market crash result in?

a) businesses closed and banks failed

b) the value of most shares fell and many people lost everything they owned

c) wages and salaries increased sharply

3) Why did the U.S. financial collapse lead to collapses of other economies?

a) because in the 20^th century, most of the world’s industrial countries had become economically dependent on one another

b) because branches and subsidiaries of American enterprises were located in all countries of the world at that time

c) because the U.S. was the major creditor and financier of postwar Europe

4) How did countries try to protect domestic production?

a) companies were strictly forbidden to engage in import/export business

b) protective tariffs and quotas were imposed

c) many enterprises were closed down

5) How many people were unemployed in the USA at the time of the Great Depression?

a) about 25 percent of the labor force

b) about 50 percent of the labor force

c) about 75 per cent of the labor force

6) When did the depression end in the USA?

a) when Franklin D. Roosevelt was elected President of the U.S.

b) when the ‘New Deal’ was adopted

c) when World War II began

В А Р И А Н Т 4

Упр.1. Перепишите предложения, поставив глагол в указанную видовременную форму, и переведите их.

1) Balance sheet is a statement of how much money [to come in – Present Perfect Active] and how much [to go out – Present Perfect Active] the company’s accounts.

2) The business day was in high gear: the mail [to look through – Past Continuous Passive], the documents [to type – Past Continuous Passive], letters [to answer – Past Continuous Passive], and talks [to hold – Past Continuous Passive].

3) In Germany, there [to be – Past Indefinite Active] hyperinflation throughout 1923 and by the end of that year, prices [to increase – Past Perfect Active] one million times in comparison with their pre-war level.

4) As technologies [to become – Present Continuous Active] more complex, the demand for education as well as for the number of qualified specialists [to grow – Present Continuous Active] nowadays.

5) The motto “In God We Trust” first [to appear – Past Indefinite Active] on a two-cent coin in 1864 at the suggestion of Secretary of the Treasury Salmon P. Chase.

Since 1955, this motto [to inscribe – Present Perfect Passive] on all United States money, including paper currency.

Упр.2. Перепишите и переведите предложения, обращая внимание на употребление эквивалентов модальных глаголов to be allowed to, to be able to, to be to, to have to. Подчеркните эквиваленты модальных глаголов и соответствующие им варианты перевода.

1) A standard set of financial statements is to be prepared by the end of each fiscal year.

2) Italy suffered enormous damage during World War II, and its economy was a shambles. After the war, the country was able to rebuild the economy with the assistance of the Marshall Plan and through membership in the Organization of European Economic Cooperation.

3) According to the law, it is not allowed to use as a trademark the flag of a foreign country or the name of a living person without his permission.

4) We were to leave for England on Saturday but because of the delay with our visas, we had to buy tickets for Monday.

5) We shall have to reduce our overhead expenses; it will lead to job losses in some departments – an unpleasant fact, but the end justifies the means.

Упр.3. Выберите модальный глагол или его эквивалент из предложенных вариантов. Предложения перепишите и переведите.

1) Though she was a good economist, she не могла find a job.

a) could not b) is not able to c) will be not allowed to d) cannot

2) The plant пришлось increase the wholesale prices for its goods.

a) had to b) must c) was able to d) is allowed to

3) Members of OPEC должны sell oil at the same price.

a) should b) are to c) has to d) are allowed to

4) Under high inflation, companies не нужно rely on the rapid growth of their returns.

a) are not allowed to b) were not able to c) may not d) don’t have to

5) The firm может obtain a credit only if it provides some guarantees.

a) is to b) may c) are able to d) should

Упр.4. Перепишите и переведите предложения, обращая внимание на способы перевода герундия [Gerund].

1) In the last 30 years of the 19^th century, consumer prices decreased by almost half in the USA as the expansion of railroad network and advances in industrial technology resulted in reducing production and transportation costs.

2) Investors are those individuals or organizations who make financial contributions to firms for the purpose of earning profit.

3) This firm’s business activity was prohibited because of illegal using famous trademarks for marketing its low-quality goods.

4) Selling and buying foreign currency is usually carried out at exchange offices at the rate set by a bank.

5) Workers and employees of European countries sometimes protest against closing enterprises, decreasing wages, increasing taxes by organizing demonstrations and strikes.

Упр.5. Перепишите и переведите предложения, обращая внимание на значения ing-формы. Подчеркните Participle I одной чертой, Gerund – двумя.

1) The principal functions of the IMF are stabilizing currency exchange rates, financing the short-term balance-of-payments deficits of member countries, and providing advice and technical assistance to borrowing countries.

2) Taking into account the high rate of inflation in the country, potential investors are interested in putting their money in more dynamically developing companies.

3) In the USA, people earning less than $8,000 a year are exempted from paying any taxes.

4) The word ‘subsidy’ is derived from the Latin ‘subsidium’ meaning ‘reserve troops’ or ‘assistance’. Today, governments use subsidies – direct payments, economic concessions, tax incentives, or privileges – for protecting certain segments of the economy from competition or failure.

5) Although accounting is one of the oldest professions in the world, it took much time in order to find satisfactory methods of keeping finance records.

Упр.6. Перепишите и переведите предложения, обращая внимание на значения ed-формы.

1) General Motors Co. supports many smaller manufacturing and service companies that provide the parts needed for making automobiles.

2) Economics is divided into two major branches: macroeconomics and microeconomics.

Macroeconomics studies the entire economy in terms of the total amount of goods and services produced, total income earned, level of employment of productive resources, and general behavior of prices.

Such issues as economic behavior of individual consumers, firms, and industries as well as the distribution of total income among them are studied by microeconomics.

3) The Industrial Revolution replaced many human workers with machines. As a result, inexpensive mass-produced goods replaced expensive handmade goods.

Упр.7. Перепишите и переведите данные словосочетания, обращая внимание на особенности перевода определений, выраженных существительными.

1) qualified specialists scarcity 6) accident insurance

2) heavy industry development 7) full-time worker

3) labor division principle 8) per capita income reduction

4) electricity consumption growth 9) cost and price difference

5) publicity agent 10) high-quality steel production

Упр.8. Поставьте сказуемые, данные в скобках, в отрицательную форму. Предложения перепишите и переведите.

1) The study of economics is useful even to those students who [want] to become professional economists.

2) If you quit your job at 50, you [will get] your full pension.

3) A woman may work hard at home but she [receives] wages for this work therefore it [is labor] in terms of economics.

4) In earlier times, people who [could pay] their debts were often treated as defrauders and criminals.

5) We [managed] to deliver the ordered goods in time as we had some problems with transport.

Упр.9. Прочитайте текст, устно переведите его и выполните упражнения, данные ниже.