Political leader Twice elected president of ArgentinaCarlos Menem's terms in office represented a rare period of political stability in the country. Yet Menem himself was never very far from controversy, both for his vivid public persona and a number of decisions that raised accusations of corruption and deceit.
Causes[ edit ] One of the causes for the Panic of can be traced back to Argentina. Investment was encouraged by the Argentine agent bank, Baring Brothers. However, the wheat crop failure and a coup in Buenos Aires ended further investments. Because European investors were concerned that these problems might spread, they started a run on gold in the U.
At that time, it was comparatively simple to cash in dollar investments for exportable gold. Inwheat prices crashed. The credit crunch rippled through the economy.
A financial panic in London combined with a drop in continental European trade caused foreign investors to sell American stocks to obtain American funds backed by gold.
From toit played a major role as a left-wing force in American politics. It drew support from angry farmers in the West and South. It was highly critical of capitalism, especially banks and railroads, and allied itself with the labor movement.
Established in as a result of the Populist movement, the People's Party reached its zenith in the presidential electionwhen its ticket, composed of James B. Weaver and James G. Fieldwon 8. Built on a coalition of poor, white cotton farmers in the South especially North Carolina, Alabama and Texas and hard-pressed wheat farmers in the Plains states especially Kansas and Nebraskathe Populists represented a radical crusading form of agrarianism and hostility to elites, cities, banks, railroads, and gold.
Silver[ edit ] The Free Silver movement arose from a synergy of farming and mining interests. Farmers sought to invigorate the economy and thereby end deflation, which was forcing them to repay loans with increasingly valuable dollars.
Mining interests sought the right to turn silver directly into money without a central minting institution. People attempted to redeem silver notes for gold. Ultimately, the statutory limit for the minimum amount of gold in federal reserves was reached and U.
Rumors regarding the National Cordage Company 's financial distress NCC was the most actively traded stock at the time caused its lenders to call in their loans immediately, and NCC went into bankruptcy receivership as a result. The company, a rope manufacturer, had tried to corner the market for imported hemp.
As demand for silver and silver notes fell, the price and value of silver dropped. Holders worried about a loss of face value of bonds, and many became worthless.
This was followed by the bankruptcy of many other companies; in total over 15, companies and banks, many of them in the West, failed. The huge spike in unemployment, combined with the loss of life savings kept in failed banks, meant that a once-secure middle-class could not meet their mortgage obligations.
Many walked away from recently built homes as a result. As a result of the panic, stock prices declined. Five hundred banks closed, fifteen thousand businesses failed, and numerous farms ceased operation. Soup kitchens were opened to help feed the destitute. Facing starvation, people chopped wood, broke rocks, and sewed by hand with needle and thread in exchange for food.
In some cases, women resorted to prostitution to feed their families. To help the people of Detroit, Mayor Hazen S. Pingree launched "Pingree's Potato Patch," which were community gardens for farming.
Passed in response to a large overproduction of silver by western mines, the Sherman Act required the U. Treasury to purchase silver using notes backed by either silver or gold.
President Grover Clevelanda Democrat, was blamed for the depression.
He in turn blamed the Sherman Silver Purchase Act. The decline of the gold reserves stored in the Treasury fell to a dangerously low level. Morgan and the Rothschild banking family of England.Many of the social upheavals during this period of emergence were caused by poor labor conditions and standards of living.
Argentina's economy and labor movement developed almost in parallel. The first to organize were the printing workers, in , and the retail workers soon followed.
Argentina Economic Outlook. August 7, Recently released data shows that the financial storm that hit the country in the second quarter, coupled with a prolonged drought, took a heavy toll on the economy.
During most of the s, Argentina outperformed most other countries in Latin America in terms of growth. However, in the late s, Argentina’s hard currency peg to the US Dollar, pro-cyclical fiscal policies and extensive foreign borrowing left the country unable to deal with a number of.
In , Argentina’s economy suffered its worst year since , culminating an economic slump that began in late Box 1 lists some statistics of the crisis.
Argentina’s crisis caused recessions in Paraguay and Uruguay and contributed to a slow economy in Brazil, because Argentina is a major trading partner for all. Conclusion 48 References 50 ARGENTINA’S ECONOMIC CRISIS: CAUSES AND CURES In , Argentina’s economy suffered its worst year since , culminating an economic slump that began in late Box 1 lists some statistics of the crisis.
Argentina Since Default: The IMF and the Depression By Alan B. Cibils, Mark Weisbrot, and Debayani Kar  September 3, It is now more than eight months since the economic crisis led to demonstrations and riots that toppled the government of President Fernando de la Rúa in Argentina, and the country defaulted on its public debt.