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The 31st president of America was elected, Herbert Hoover. He had quite a bad reputation as the depression began. -
The Roaring Twenties reached its peak economic state during August before beginning to decline. -
In 1929 on Black Thursday, the stock market crashed, becoming one of the main reasons for the Great Depression's start. -
Stock prices fall by 13% today, making the day become known as Black Monday
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People were becoming panicked due to the stock market crash and began aiming to protect themselves from the fear of the banks' safety.
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Taxes on 900 different imports were raised when President Hoover signed the Smoot-Hawley Tariff Act. Its aim was to support farmers, but hundreds of other goods had tariffs imposed. This impacted international trade which began to fall since other countries reacted to these tariffs. The tariff didn’t have a huge effect on the American economy but caused many problems in Europe. -
Bank failures occurred in associated banks in the following days, and the Bank of Tennessee failed. Weaknesses in the banking system were having an effect on the economy as it was slowly growing, ultimately bringing it back down again.
By the end of 1930, over 1,300 banks would fail as depositors hurried to withdraw their life savings. Since the banks only hold a small percentage of deposits, they can fail quickly, especially with the number of people asking for their money. -
February: 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 himself. 100 policemen managed to bring the riots under control and 7 people were arrested as a result. -
The fourth largest bank in the United States, the Bank of the United States, fails, causing the biggest failure in a bank at the time. President Hoover then brought the top income tax rate up to 25% as he was concerned about budget deficits. When the bank collapsed, it had more than $200 million in deposits, which made it the largest bank failure in the history of the United States and was one of the most hard-hitting events during the Great Depression. -
The Reconstruction Finance Corporation is created by Congress, which lends $2 billion to prevent further failures in financial institutions. It would be authorized to lend states money in July. -
Since its peak in August 1929, the economy would reach rock bottom after a 27% shrink. -
It’s reported that over 750,000 people in New York are on city relief, and 160,000 more are on a waiting list. On average, expenditures allowed for around $8.20 a month for those people getting relief.
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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. -
Franklin D. Roosevelt, a 1932 presidential candidate, gives his “New Deal” speech to the public to reveal his plans for economic recovery. -
In one of the key events in this Great Depression timeline, Democratic candidate Franklin D. Roosevelt is elected President of the United States after defeating Herbert Hoover in a landslide victory. Roosevelt got 22,800,000 popular votes, compared to Hoover who got 15,750,000. -
President Roosevelt begins his “first hundred days” in office and 15 laws are introduced rapidly to begin tackling the Great Depression. -
President Roosevelt closes all banks for a “bank holiday.” -
Just five days after his inauguration, President Roosevelt creates the Emergency Banking Act, launching the New Deal. In order to prevent even more terrible failures, the act closed all banks in the United States. Throughout his time in office, Roosevelt would sign many more acts that would aid reform and recovery form the depression. -
President Roosevelt begins his “Fireside Chats,” a series of broadcasts from his home where he would keep the country updated on the government’s attempts to combat the Great Depression. In the first Fireside Chat, Roosevelt talks the nation through the new bank laws he is introducing. -
In an attempt to reduce government spending to help support the New Deal, the Government Economy Act is introduced.
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Bringing the Prohibition era to an end, the Beer-Wine Revenue Act raises revenue by placing taxes on alcohol sales. Prohibition is officially repealed by the 21st Amendment in December. -
A Pension Plan is proposed by Dr. Francis Townsend when he sends a letter to the Long Beach Press-Telegram. He suggested that pensions funded by the state for the elderly would be a good way to boost employment and consumption.
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4 million construction jobs are created by the Civil Works Administration.
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The Old Age Revolving Pensions Ltd. is officially incorporated by Dr. Francis Townsend
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Gold price history is changed when the Gold Reserve Act is introduced. The act doubled the price of gold and banned private ownership.
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The Share Our Wealth society is founded by Huey Long, which obtains the “excess fortunes” of the rich to give to the poor. -
Known as Black Sunday, the worst dust storm hits the United States. In order to help farmers learn how to work sustainably, President Roosevelt introduces the Soil Conservation Act.
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Federal mortgage insurance is provided by the Federal Housing Administration and the stock market becomes regulated by the Securities and Exchange Commission.
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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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There are 27,000 clubs in the Share Our Wealth society across the country, with 7.5 million Americans on the mailing list.
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The Works Progress Administration is created by the Emergency Relief Appropriation, hiring 8.5 million people to help with the unemployment crisis.
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The heat in the United States continued to blaze, with 8 states recording temperatures of 43 degrees celsius or warmer. Throughout the year, another 12 states recorded temperatures of the same level, including another four that reached 48 degrees.
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President Roosevelt is elected to a second presidential term.
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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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With the invasion of Poland by Hitler and the start of the Second World War, President Roosevelt persuaded Congress to remove the military arms embargo to France and Britain to support them during the war.
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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 mobilizing 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.