Fifty Things You Need to Know About World History. Hugh Williams
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Название: Fifty Things You Need to Know About World History

Автор: Hugh Williams

Издательство: HarperCollins

Жанр: Историческая литература

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isbn: 9780007411115

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СКАЧАТЬ from the seventeenth century onwards with the increasing circulation of money, the development of banking institutions, and globalisation.

      Stock market crashes and financial bubbles occur when speculation drives up the price of an asset or stock above its true value. When participants begin to sell the stock, panic-selling often takes over, and the price declines dramatically, prompting a stock-market crash. ‘Tulip Mania’ in the 1630s is regarded as the first economic bubble. Prized as a luxury during the Dutch Golden Age, speculative trading saw tulip prices peak and collapse in 1636–37. In 1825 the stock market in London crashed partly as a result of highly speculative investments in Latin America, including the imaginary kingdom of Poyais, and nearly led to the collapse of the Bank of England. The best-known crash is that of Wall Street in 1929.

      Bank runs occur when depositors rush to withdraw more money from the banks than the banks hold at the time with the result that depositors lose their assets. The Great Depression in America in 1931 saw a ferocious run on the Bank of the United States.

      Currency crises and hyperinflation occur when the supply of paper money increases dramatically causing the value of the currency to decline. The Weimar Republic of Germany experienced this in 1923 when the Deutschmark fell to a value of DM 4,200,000,000,000 to the dollar. Between 1945 and 1946 Hungary experienced hyperinflation when prices rose by over nineteen percent per day.

      It is still too early to know whether the Western world will change its attitude towards markets and what they are for. But if they do, it is more than likely that those changes will be created, not by the application of a new philosophy, but by the impact of harsh economic reality. The principal difference between the Great Depression and the Credit Crunch is the effect upon the poorer people of the industrialised nations. In the Great Depression this was devastating, not least because to begin with banks did not know how to cope with it. In particular they made the fatal error of restricting money supply by raising interest rates. In America, the Federal Reserve, the country’s central bank, did not intervene and lend to struggling banks in order to prevent their collapse. In the Credit Crunch the reverse happened. Interest rates fell and failing banks were bailed out by governments. This and the improvements in social welfare that have taken place since the end of the Second World War meant that the immediate consequences of the crisis were reduced. The sight of large crowds of homeless or unemployed people has not so far been a feature of the collapse in the markets.

      In the longer term, however, that may change: the price of quick salvation is high. The cost of rescuing the financial systems of the West has plunged its governments into deep debt. In 2009 the International Monetary Fund reported that the world’s ten richest economies had borrowed a total of more than $9 trillion in order to cope with the crisis. In a weak global economy, paying back these huge sums will prove a hard task. In Ireland the economic improvements of the previous twenty years have been all but extinguished by the financial turmoil. Everywhere countries face the prospect of introducing older retirement ages, higher taxes and deep spending cuts. In 1929 the sudden shock of the Wall Street Crash led to immediate devastation and despair. In 2010 the aftermath of shock may have been delayed, but not necessarily eradicated. The Credit Crunch could yet lead to the long term of erosion of wealth in the modern world.

2 Freedom

       Introduction

      Freedom is a much-abused concept. In English we use two words meaning the same thing – ‘freedom’ and ‘liberty’. The first has a Teutonic root, the second comes from the Latin. Most other European languages have only one word, for example, liberté in French, freiheit in German or libertad in Spanish. The sad fact is that however many words are used to describe it, in the history of the world those promising liberty or freedom have often lied. Movements claiming to set people free have ended up imprisoning or suppressing them. True freedom is both hard to find and define. Like happiness, with which it is often associated, it is one of the most desired yet most elusive accompaniments to the progress of mankind.

      In his book On Liberty published in 1859, the British political philosopher John Stuart Mill argued that ‘the only purpose for which power can be rightfully exercised over any member of a civilised community, against his will, is to prevent harm to others. Over himself, over his own body and mind, the individual is sovereign.’ As with all philosophical pronouncements, it is a statement that begs some questions – most importantly in this case, what is the definition of preventing harm to others? But the broad principle of Mill’s thought is one that many of us would agree with today. It remains a remarkably modern definition of liberty. For most of us our individual freedom is the most precious thing we possess. Furthermore, we take it for granted.

      The journey to this state of affairs has been a long one, and it is not finished yet. It started in ancient Greece with philosophers like Socrates who argued that accepted truths should always be tested by rational argument and free discussion. From there it travelled into Roman thought where politicians like Cicero adopted the Socratic approach to open debate. The triumph of Christianity in Europe led eventually to the medieval age of suspicion and persecution. Argument became heresy in the mire of the Inquisition. By the fifteenth century, the ideas of the Renaissance, combined with the desire for greater religious freedom that inspired the Reformation, began to shake the foundations of the Church, although freedom of thought was still suppressed. Protestants could be just as ruthless as Catholics in exterminating opinions of which they did not approve. It was not until the end of the seventeenth century, when scientific discovery started to undermine the defences of a world built on religious foundations, that rational thought burst into the explosion of ideas we call the Enlightenment. From that time on concepts of freedom that we would recognise today came into being. Modern political thought has its beginnings in the philosophers of the late seventeenth and eighteenth centuries.

      This section of the book picks its way through this process beginning with the slave rebellion against the Roman Republic led by Spartacus in 73 BC. Its bravery and brilliance have been an inspiration for many of those fighting for freedom ever since. Jan Hus, a Czech who was burned at the stake for his religious beliefs in Constance, Germany, in 1415 was one of the first great leaders of opposition to the Catholic Church in the Middle Ages, and is still regarded as a national hero in his own country. The American Declaration of Independence of 1776 and the French Revolution that began in 1789 were two of the greatest upheavals in world history. The first led to the creation of a great democracy while the other’s high ideals were drowned in blood and resulted in Napoleonic dictatorship. The concept of individual freedom is arguably nowhere better expressed than in the works of Beethoven, whose music embodies the Romantic movement. The Zulu War of 1879 was an unsuccessful fight for liberty against the oppressive power of the British Empire; in Russia in 1917 the Bolshevik Revolution overthrew the monarchy of the Romanovs, promising liberation but building a terrifying Communist monolith instead; and in 1949 Mao Zedong became the Communist leader of China and began the ruthless control of his nation that would begin its transformation into a great world power. But in Europe the power of Communism fell into decline, its end signalled by the collapse of the Berlin Wall in 1989. A year later, the greatest African leader of the twentieth century, Nelson Mandela, was released from prison. The oppression of apartheid ended as he began the leadership of his country to black majority rule.

      Each of these events can be seen as stepping stones to freedom. Together they provide a series of points from which we can look forward and back at man’s attempts to make himself free. But a series of attempts is all they are. On the whole man’s freedom remains something he desires rather than something he has found.

       CHAPTER СКАЧАТЬ