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Calvin Coolidge becomes president after President Warren Harding dies in office. Coolidge has the same commitment to what is happening with the economy. In District of Columbia the minimum wage nullifies by the Supreme Court.
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National IncomeTop tax rate has been lowered to 25 percent. THis rate is the lowest top rate it has been in the eight decades since World War I. The price of stock is predicted to go up by about 40 percent.
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Great DepressionThe Stock Market Crashes on what they call Black Thursay. The Stock prices when up and banks will be calling for loans becuase of the Stock Market Crash. With this rate an estimated $30 billion will disappear by mid-November.
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In October more that 1.5 million people were unemployed before the stock market crashed. After it crashed, more than 3.2 people were unemployed. President Hoover still said with confidence that the worst of the unemployment should pass in the next 60 days.
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Dust BowlThroughout the Midwestern and Southern Plains there has been a severe drought. What they call the "back blizzrd" started as the crops died. As the wind begins to blow it takes all the dust from the over-plowed and over-grazed land.
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The GNP, Gross National Production, is still falling and falls another 8.5 percent. Unemployment is increasing as well. The unemployment has rised to 15.9.
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Industry Stock LossSince 1930 the value of the industrial stocks have lost 80 percent. The loss of the value witht the industrial stock 40 percent, or about 10,000, of the banks have failed. The International trade has also fallen by two-thirds since 1929.
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In March, a third banking panic occurs. President Roosevelt closes financial institutions. He declares a Bank Holiday to stop a run on banks.
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To help farmers face forclosure the Emergency Farm Mortgage Acts sets $200 million aside for refinancing mortgages of farmers. With the Farm Credit Act they are establishing a local bank to set up local credit associations. They are trying to help out fromthe Farm Credit Act started in 1933.
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The GNP rises 7.7 percent and the unemployment goes from 24.9 to 21.7 percent. Sweden is the first nation that flly recovers from the Great Depression. The policy of Keynesian deflict spening is followed by this.
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The Congress authorizes the creation of the Federal Communications Comission. This is the National Mediation Board and the Securities and Extange Comission.The economyis starting to turn around.
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The dust storm is covering more than 75 percent of the country and is affecting 27 states severely. The dust storms are spreading from just the Dust Bowl area. The drought is the worst ever in U.S. History.
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To try to coordinate relief activities the federal government forms a Drought Relief Service. This program buys cattle in countries that are designated emergency areas. The cattle that isnt fit for human consumption is given to the Federal Surplus Relief Corporation. When they go here, they are used in food distribution to families nationwide.
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Shelterbelt ProtectionThe FDR's Shelterbelt Project is for large-scale planting of trees across the Great Plains. The shelterbelt will sstretc in a 100-mile wide sone from Canada to northern Texas. This projest is to protect the land from erosion and from future storms like the one that had been there.
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Finally, the rain comes and brings an end to the drought. With the coming of World War II, the country is pulled out of the Depression. Over the next few years the plains become golden with wheat like they once were.
