Depression and New Deal

Question 1

Period of Great Depression

Answer 1

1929-1932
Unemployment soared
GNP collapsed
Banking System came dangerously close to a full breakdown

Question 2

Growth of Unemployment

Answer 2

1929 = 3% of labour force
1933 = 25% of labour force
Unemployment not spread evenly
1933 Toledo, Ohio = 80% unemployment
1933 Kilgore, Texas = little unemployment due to temporary oil boom
Some industries e.g. Cigarette and Light bulb manufacture remained relatively immune to Depression

Question 3

Collapse of GDP

Answer 3

Significant decline in GDP during Depression
1929 = $104 billion
1932 = $56 billion
National Growth Rate went into sharp decline from annual rate of 6.7% in 1929 to -14.7% in 1932

Question 4

Credit and Banks

Answer 4

Stock Exchange remained depressed

Over 10,000 banks failed between 1929 and 1932

Question 5

Effects on individual industries

Answer 5

Rare individuals who did keep their jobs tended to be better off as wages rose
General price levels fell by 25% during early 1930’s
1930’s = period of business innovation with introduction of air conditioning, airline travel and supermarkets
Pockets of prosperity remained