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A drought hits 23 states across the US, affecting those from the mid-Atlantic region to the Mississippi River. This was the beginning of the Dust Bowls, which became characteristic of the 1930s farmers’ struggle. As well as a struggling economy, the land was unable to be used to grow crops, pushing many farmers out of their land. This is appropriately depicted in the novels by John Steinbeck, namely Of Mice and Men and The Grapes of Wrath.
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Hoover got a bad reputation as the Great Depression began, since his laissez-faire approach to economics didn’t help relieve the situation. In his belief, capitalism could prevent any major economic downturn through a free-market economy, therefore he didn’t want the economy to be well-regulated. He assumed the crash and the depression would be over quickly, and that government interference was unnecessary.
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In Minneapolis, food riots erupt as people struggle for food. A few hundred people smash the windows of a grocery market, taking bacon, ham and canned goods with them as they run away. A store owner pulled out a gun to stop the robbers, but ended up having his arm broken as he jumped up to defend. 100 policemen managed to bring the riots under control and 7 people were arrested as a result.
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President Hoover signs the Revenue Act of 1932, which increases the top income tax rate to 63%. Believing it would restore confidence and reduce the federal deficit, the taxes being pushed to a higher rate would actually make the depression worse.
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President Roosevelt begins his “first hundred days” in office and 15 laws are introduced rapidly to begin tackling the Great Depression.
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Support for the Townsend Plan grows, with more than 5,000 Townsend Clubs nationwide bringing together more than 2 million members. Even more, around 25 million Americans asked their representatives to support the plan in Washington by signing petitions.
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This year, President Roosevelt had the difficult task of having to manage the debt, but also try to keep the economy out of the depression. In an attempt to relieve the country’s debt, he cut back spending on the New Deal programs, which ultimately pushed the economy back into the depression. In the end, after a $5 billion relief program was enacted by Congress, the economy grew by 5.1%.
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The economy started to grow again this year, eventually bringing the country out of the Great Depression. However, unemployment rates were still extremely high. Unemployment Rate: 19.0%
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In 1939, a Federal Security Agency is made to offer federal education funding, food, drug safety and Social Security, in order to help people try and get back on their feet.
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When the United States enters the war following the Japanese attack on Pearl Harbour, the country is finally able to get out of the Great Depression by mobilising for war. At the end of the Second World War, despite its devastating effects, the United States would emerge as the only economic superpower in the world.