When I was growing up, our parents taught my siblings and me about The Great Depression. We were poor, but that was no excuse not to learn. Our parents earned $3.00 a day chopping cotton in the hot sun during the summer. In the fall, they picked cotton and were paid based on the weight. Sometimes, Dad worked day labor jobs between the cotton seasons. MaDear worked in private homes, cooking, cleaning, and ironing. When we were older, we helped them in the cotton fields.
MaDear saved a portion of all the money earned. She tied it tightly in a white handkerchief and hid it in a special place. She called this saving for a rainy day.
Both parents grew up during The Depression that lasted from 1929 to 1945. The Depression did not affect most rich people. Herbert Hoover, a Republican, was president when the stock market crashed. This crash swiped out a great deal of normal wealth, caused high unemployment, and the failure of banks. Nervous investors sold overpriced shares. The stock market lost approximately 85% of its value and wealth was destroyed.
The world trade collapsed due to the collapse of the Smoot-Hawley Tariff. This tariff protected farmers and other industries from foreign competition. Congress was petitioned to raise the tariff. When one company raised it, everyone did. As a result, the economy was closed.
Government policies caused banks to fail. Banks are heavily involved in lending. There was less spending on consumer durable goods such as cars, refrigerators, etc. Money was needed for necessities.
According to the book, The Great Depression and WWII, by Thomas C. Cochran, by the spring of 1932, conditions in the United States reached what seemed to be an intolerable impasse. It grew worse over time. There was never any threat of a revolution or radicalism of American politics. The American culture of self-help and individual responsibility made citizens feel guilty and resentful, but they were not ready to rebel and fight for a new order.
Towns called Hooverville’s grew on the outskirts of cities. American s grew tired of President Hoover’s politics. The Democratic Party nominated Franklin D. Roosevelt. He defeated Hoover in a landslide and was elected president in 1932. President Roosevelt focused on combating this Great Depression. Despite his best efforts The Depression hung on until 1941, when young men were drafted into the military during WWII. This war created millions of jobs in defense and war industries.
President Roosevelt’s New Deal (1933), aimed at promoting economic recovery and putting Americans back to work through Federal activism. The New Deal established aids for American economic development. Banking and investment were made safer by deposit insurance. New Federal agencies controlled agricultural production, stabilized prices and wages, and created public works programs for the unemployed. Mobilizing the economy for war finally cured The Depression. Millions of men and women joined the armed forces and more went to work in well-paying defense jobs.
Photo of Hooverville.
Francie Mae. January 23, 2024.
Reference
Cochran, Thomas C. Seventh in publication for Scott, Foreman American History Series. The Great Depression and World War II, 1929-1945. Scott, Foreman and Company.