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14-May-2014 11:05

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Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and rising levels of unemployment as failing companies laid off workers.By 1933, when the Great Depression reached its nadir, some 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed.By 1930, 4 million Americans looking for work could not find it; that number had risen to 6 million in 1931.Meanwhile, the country’s industrial production had dropped by half.The Japanese attack on Pearl Harbor in December 1941 led to an American declaration of war, and the nation’s factories went back in full production mode.This expanding industrial production, as well as widespread conscription beginning in 1942, reduced the unemployment rate to below its pre-Depression level.Though the economy began improving again in 1938, this second severe contraction reversed many of the gains in production and employment and prolonged the effects of the Great Depression through the end of the decade.

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In 1935, Congress passed the Social Security Act, which for the first time provided Americans with unemployment, disability and pensions for old age.In addition, Roosevelt sought to reform the financial system, creating the Federal Deposit Insurance Corporation (FDIC) to protect depositors’ accounts and the Securities and Exchange Commission (SEC) to regulate the stock market and prevent abuses of the kind that led to the 1929 crash.Among the programs and institutions of the New Deal that aided in recovery from the Great Depression were the Tennessee Valley Authority (TVA), which built dams and hydroelectric projects to control flooding and provide electric power to the impoverished Tennessee Valley region of the South, and the Works Project Administration (WPA), a permanent jobs program that employed 8.5 million people from 1935 to 1943.In the fall of 1930, the first of four waves of banking panics began, as large numbers of investors lost confidence in the solvency of their banks and demanded deposits in cash, forcing banks to liquidate loans in order to supplement their insufficient cash reserves on hand.

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Bank runs swept the United States again in the spring and fall of 1931 and the fall of 1932, and by early 1933 thousands of banks had closed their doors. secretary of commerce, believed that government should not directly intervene in the economy, and that it did not have the responsibility to create jobs or provide economic relief for its citizens.For those who were lucky enough to remain employed, wages fell and buying power decreased.



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See the blogs at for a screenshot and their photo albums for some of the pictures from his personal My Space. Karen L wrote: "There were once photos of David with Phillip online, which have now mysteriously gone away." That's because they mysteriously never existed.… continue reading »


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