How the Stock Market Crash of 1929 Affected Central America

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The stock market crash of 1929 affected the countries in Central America and all over Latin America which followed the Great Depression. Before this all happened, the United States had major ties, like exportation, to Central America and most notably Mexico; so when America crashed, they all crashed. The underdevelopment of Latin America was never clearer. It was the time between the middle of the 19th century and the beginning of the 20th century when the fertile low lands were being exploited which brought major economic growth to the country. Argentina was one of the world’s wealthiest nation per capita and being so high only made the decline that much harder. The deterioration of Argentina beginning with the depression era in the 1930 was epic; a new power and a new man in charge of the country ended the stability of the fledging country. Add that to the great depression in the United States and you have crashing markets all over the world and the most unstable Argentina has ever been. It was all of Latin America who was hit by the great depression of 1930, so Latin America’s response was to become self sufficient. The idea of import substitution was then established by the government that was attempting to promote self sufficiency. Argentina, along with many countries throughout Central America adopted the economic model, I.S.I. I.S.I. is the substitution of imports with manufactured goods that are domestically and locally produced. Instead of relying on the United

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