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 topolitical 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 theNew 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]

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

Ex.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

Ex.12. Составьте предложения из двух подходящих по смыслу частей и переведите полученные высказывания.

1) The longest economic depression in a) to bring about major changes in the

the history of the Western world… structure of the U.S. economy.

2) The U.S. financial collapse led to… b) had been reduced in half.

3) Tuesday, October 29, 1929 was called c) regulating economic activity and in

Black Tuesday as… ensuring economic stability.

4) By 1932, United States industrial output… d) began with the New York Stock Market

Crash.

5) The Great Depression caused such massive e) collapses of other economies, especially

unemployment, poverty and hunger… those of Germany and Britain.

6) The main aim of the New Deal was… f) on that day, more than 16 million shares

were sold.

7) After the Great Depression, governments g) that had never been known in the USA

began to play a principal role in… before.

В А Р И А Н Т 4

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

1) The approval of the new tax law [to cause – Present Perfect Active] considerable discontent in commercial circles.

2) At the end of the 20^th century, the unemployment [to grow – Past Continuous Active] rapidly not only in the countries of the Third World but also in economically developed countries.

3) Nowadays, employees [to pay – Present Indefinite Passive] either in cash or by check, but direct payments into the employee’s bank account[to become – Present Continuous Active]more and more popular.

4) Twenty new workers [to hire – Past Indefinite Passive] for temporary job after the company [to receive – Past Perfect Active] the rush and heavy order for the delivery of their products into one of the developing countries.

5) In Norway, both the euro and the national currency, the crown, [to use – Present Continuous Passive] in circulation now.

Ex.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) Only certified public accountants are allowed to estimate the accuracy of a company’s financial statements.

2) In order to avoid risks, investors have to assess the likely future returns from their investments in advance.

3) With the beginning of “perestroika” in this country, a number of enterprises were not able to adjust to new economic conditions. Some of them went bankrupt; others had to be closed down because they were unprofitable.

4) Domestic firms are to raise efficiency of their production because international trade increases competition among producers.

5) Some economists think that such rapidly developing Asian countries as China and Taiwan will be able to overtake the USA in the production of high-tech equipment in the nearest future.

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

1) Until the 19^thcentury, peopleмогли travel freely between most countries without a passport.

a) was allowed to b) were to c) were able to d) may

2) Part of the company’s profits должнаbe put into the business development.

a) is to b) shall have to c) is allowed to d) were to

3) I hope that our company сможет compete with the larger manufacturers.

a) will have to b) can c) will be allowed to d) will be able to

4) If you want to quit the job, you должен give a month’s notice.

a) may b) have to c) could d) is able to

5) Exchange rate is the price at which you можешьbuy and sell foreign currency.

a) could b) are to c) had to d) can

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

1) Consumers have already appreciated the convenience of buyingexpensive durable goods such as cars, TV sets or washing machines on credit terms.

2) Boom is a period of intense business activity when a growth of demand for all the commodities results in increasingindustrial production.

3) Under conditions of hyperinflation, withdrawing national currency from circulation and issuing a new monetary unit is the only possible decision.

4) In translating the terms ‘counterfeiting’ and ‘forgery’, one should take into consideration that there is a slight difference between them.

Counterfeiting means making false money, securities, and, sometimes, consumer products. Forgery means falsifying documents such as checks, passports, driver's licenses, credit cards, birth certificates, Social Security cards, wills, theater tickets, or identification cards.

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

1) Before manufacturing a new product and putting it on sales, market research should be carried out. Marketing system is used not only for introducing new products in the market but for increasing sales of an existing product as well.

2) The company’s manager makes many important decisions concerning hiring and firing employees, distributing duties among them, evaluating the company’s activities.

3) Taking into account the company’s high reputation among businesspersons, the creditors have agreed to its paying the debt in a month.

4) The International Monetary Fund was set up during the World War II with the aim of encouraging economic cooperation between the countries in the post-war period.

5) The number of students specializing in finance, credit and accountancy is constantly growing in this country.

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

1) Canada is known throughout the world for its rich natural resources and for the great amount of grain raised by its farms, but it is manufacturing industries that employ more people than agriculture, mining, forestry, and fishing combined.

2) A place where coins are minted according to exact compositions, weights, and dimensions, usually specified by law is called a mint.

3) Gross Domestic Product is the total market value of goods and services produced within a country during some period, usually one year.

4) The Copyright Act adopted by the US Congress in 1976 created the legal foundation for protecting the work of many industries, for example music recording industry, motion picture industry, book publishing industry, etc.

5) The first minimum wage in the U.S. enactedby Massachusetts in 1912appliedonly to women.

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

1) labor productivity increase 6) interest rate cuts

2) debtor creditor relationships 7) seven-day goods delivery

3) economy recovery problem 8) product quality index

4) revenue growth prospects 9) salary deduction

5) European Union member-countries 10) oil production decline

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

1) Less developed countries got political independence more than 50 years ago, but they [have reached] a high level of living standards of industrialized countries yet.

2) The level of living [varies] greatly in main industrialized countries, it is relatively the same.

3) A bank [will grant] you a loan to start a company if you [have] a business plan.

4) The goods produced by the members of the European Economic Community [are subjected] to high taxes and sometimes are duty-free.

5) He lent me the money but he [trusted] me completely and asked me to give him an IOU.

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