Depression Era

Wall Street Crash, under consumption, over production, weather, failing banks, problems in Europe, American goods

market relied on confidence of investors - weakened, bull pools encouraged inexperienced investors to speculate - artificial market growth

mid November - shares lost 26 billion in value, issue of liquidity - banks closed so businesses couldn't get loans and people lost savings

71% on low incomes, once people had bought luxury items they wouldn't keep buying

10 times as many tractors in 20s than in 1915, rayon, prohibition

1930-31 severe drought across great plains, dust storms began in 1932 - made land unusable

20% failed, when New York banks failed - 400,000 lost savings

US lent allies money in WWI but they could not pay back - used US loans to pay off debt - had little money to buy American goods

counter tariffs, international trade 1929 - 36 billion, 3 years later - 12 billion

manufacturing wages cut by 50%, 70,000 factories shut down by 1933, Ford sacked 1/2 Detroit workers

prices 60% below 1929 level at lowest point, farmer earnings fell from 6 billion to 2 billion, couldn't pay mortgages - 1/3 lost land, dust storms - 1 million left Great Plains - 'Okies'

100,000 applied for jobs in USSR, suicide rate increased by 14% 1929-31, 24.9% unemployment 1933

1/2 black women lost jobs, elderly couldn't afford retirement - only 11 states had pension schemes, 40,000 joined 'Black Shirts' against black people in work

over 1 million men moved around in search of work, 1931 NYC gov had to try and find accomodation for 20,000 kids, rent parties - usually held by black Americans a few days before rent due

shanty towns, Seattle - Jesse Jackson declared himself mayor of the Hooverville

WWI vets promised $625 bonus in 1945, marched on Washington, 5,000 refused to go home

Congress agreed to pay for their journies home, sent police - 2 vets killed, sent army - 100 injured and 1 child killed

volunteerism, self-reliance, laissez-faire

$2 billion provided by gov to rescue banks - criticised for helping banks not people

Hawley-Smoot Tariff raised prices on foreign food by 40% - other nations just did the same

National Business Survey Conference meeting of 400 business executives - made promises - broken as depression worsened

doubled federal spending of public works eg Grand Coulee Dam - federal spending was $210 million 1930, states spend around $2 billion a year