Depression, The Great, 1929-1939
For 10 years beginning in 1929, most of the world experienced the largest economic depression in history. The Great Depression devastated national economies, threw millions out of work, and contributed to the outbreak of World War II. In Seattle and King County, the Depression resulted in tens of thousands unemployed and underemployed, the reemergence of organized labor, and a redefinition of state politics. The most enduring symbols of the hard times were the shanty towns called Hoovervilles, thrown up by the homeless. Recovery programs under the administration of President Franklin D. Roosevelt produced an array of public works projects from parks to dams to public housing. The hard times ended with the rapid growth in employment and government spending for World War II.
Days of Crisis
In 1929, just after Republican President Herbert Hoover took office, the U.S. economy contracted, after eight years of unprecedented growth. There followed on October 29, Black Friday, when the Stock Market took a nosedive. The Dow Jones Industrial Average lost 40 percent of value in eight weeks. Economists and historians cite many causes of this Depression, and all agreed it was the most serious economic calamity yet experienced.
The Hoover Administration took the position that government should not interfere with capitalism, but President Hoover and the Congress did pass protective tariffs on imported goods. This action might have supported domestic industries, but it also served to export the depression to Europe which in the years since World War I had become heavily reliant on U.S. markets for its goods.
There are no reliable statistics, but the best estimates hold that Seattle had 11 percent unemployed in April 1930, rising to 26.5 percent in January 1935 (Berner, 302). Statistics did not account for employees who worked, but experienced drastically reduced wages and could not consume goods and services as they had before.
addendum, 11,000 of the 24,000 banks FAILED. CLOSED THEIR DOORS AND TOOK ALL THE CASH IN THEM.
NOW, WHILE WE HAVE HAD THE DROP IN DOW SIMILAR TO THE GREAT DEPRESSION. OUR ECONOMY IS NO WHERE NEAR THE ECONOMY OF THE GREAT DEPRESSION. NOW...1 out 20 unemployed and those employed are basically at regular wages, THEN...at least 1 out 4 and more likely 1 out of every 3 people UNEMPLOYED, NO MONEY, NO LIKELYHOOD OF GETTING ANY AND THOSE THAT WERE EMPLOYED WERE AT SEVERLY DECREASED WAGES.
banks. now...all open and with insurance for accounts. then... about 1/2 the banks closed and took everyones money with them.
policy... NOW...central banks, insurance, gov looking for ways to increase spending in the economy. THEN... raised tarriffs decreasing demand, NO CENTRAL BANKS. NO INSURANCE. NO POLICY.
GREAT DEPRESSION PRICES and the economy is no where near the great depression.
just common sense. we go up from here. JMO. kanguru ed. |
