Many economists are trying to maintain their morale by anticipating a rapid recovery in the economy once the last Corona pear appears. And maybe sooner. They point to Twenties roaringA period of unprecedented optimism in Western countries, a century ago. At the WNL Op Zondag, economic journalist Anna Diggman has made herself translate to that sentiment, although she did make some comments along the way.
We hope history will not repeat itself because after World War I and the Spanish flu pandemic, there has been a major economic slowdown known as malaise. Order books for large companies are blank. Employers responded by cutting wages. Strikes against this policy failed one after the other, often after a bitter struggle. Governments turned to austerity policies. Our work week has been extended – 45 hours since 1919 – to 48 hours. In 1923, the leader of the counter-revolutionary party, Hendrikus Cullen, joined the Christian cabinet, Rois de Berenbroek as Minister of Finance. He immediately stressed the current austerity policy. De Volkskrant described the throne speech that year as “gloomy and depressed in tone”. Collin cut social insurance and transferred support to the unemployed under the Poor Act, so that from now on they have to take refuge in their municipality. In addition, he cut all wages and salaries in the government by twenty percent. The knife went to many awards. As a notable feature of the auction, 30 million guilders have been added in new cartoons. That’s a quarter of a billion euros now. Thanks to such measures, the budget reached equilibrium in 1926. Interesting details: Queen Wilhelmina and Queen Mother Emma have announced their willingness to make financial sacrifices in the fight against budget cuts. As we know, this did not develop into a family tradition among oranges.
The global economic recession began to fade in late 1924. Only then did the Roaring Twenties, or as the Germans call them, do the 1920s. The Golden Twenties. In 1929, this festive period ended with the sudden collapse of Wall Street. Remember: just like a century ago, a bubble develops again in the stock market. The same goes for real estate. There is a huge mountain of debt. The 1920s were theirs, too. All the belligerent nations financed the military operations with borrowed money. The losers had to make impossible high compensation on top of that. Germany borrowed additional money for this purpose in the United States, which was the world’s largest creditor in those years.
So the economically bustling 1920s were built on the sand. Receipts were left after party for next time until this was no longer possible.
Hope I can make it more beautiful, honestly …
As for the rest, I think that the issue of additional cost should not disappear from the public’s interest, as well as the issue of natural gas in Groningen.
The Dagus Bella Orchestra from Berlin: Make Me Black Bottom, 1928