Hoover's Business Cycle: Prosperity strong production, industrial expansion, high prices and profits, easy credit, full employment, good wages, optimism
Hoover's Business Cycle: Recession reduced demand for goods, decreased production, falling prices and profits, calling in of bank loans, decreased employment, falling wages, caution and worry
Great Depression The stock market crash of October 1929 brought the economic prosperity of the 1920s to a symbolic end. The Great Depression was a worldwide economic crisis that in the United States was marked by widespread unemployment, near halts in industrial production and construction, and an 89 percent decline in stock prices. The Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929.
Reduction in Purchasing Across the Board -With the stock market crash and the fears of further economic woes, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation.
In 1928, the top 1% earned 29.94% of the nation's income (about 24.5 mil.)
By 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30 percent of the work force.
In previous depressions, farmers were usually safe from the severe effects of a depression because they could at least feed themselves. Unfortunately, during the Great Depression, the Great Plains were hit hard with both a drought and horrendous dust storms.
It was a period of protests and hunger marches — and unionism spread like wildfire — but many people suffered quietly, ashamed of their poverty.
Many countries wanted to protect themselves from the chaos in the economy, so they decided to make more laws restricting trade and reinforce the ones that were already in place.
During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929.
by 1933, 11,000 of the United States' 25,000 banks had failed. Signaled the beginning of government involvement in the economy and in society as a whole.