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Farmers income decreases
Farmers were the ones suffering the most during the 20s and after the war overall. Due to the overproduction created because of Tariffs and the low prices for the products farmers started earning less and less. Their share of the national income dropped from 15 to 9% during the time from 1920 - 1928. -
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Stock Market rises
The stock market started to rise during the mid 20s.
With a steady rise more and more people started investing into it and thus making it rise even more, up until 1929 -
The Revenue act of 1926
The Revenue act of 1926 lowered the rate of taxes drastically.
Especially the "Top Tier" the people with high incomes benefited a lot from it, as they only were taxed for 25% of their income. -
Herbert Hoover is elected as president
On March 1st Herbert Hoover is elected as the 31st President.
He believes in a "Laissez faire" policiy, where he doesn't really get involved in the economy. -
Black Tuesday
Stock prices fall for about 12% and kick off the start of the Great Depression. Banks started intervening which only caused even more panic and worsened the problem. -
The stock market's low
The Stock market finally hit rock bottom, after a time of steady declines it finally started stabilizing for at least a little bit and even has a little increase for a short while. -
Bank Failures
Bank failures were at an all time high with 650 bank failures in a single month. This reduced the money supply, which eventually led to lower prices.
Businesses made less revenue and ended up laying people off. -
Period: to
Dust bowl
A drought hit 23 states from Mississippi to the mid Atlantic region.
During the time it was active it covered 300.000 square miles and blew 650 tons of topsoil off the Great Plains. -
Smoot-Hawley Tariff
Hoover signed the Smooth-Hawley Tariff act, where he raised the taxes in order to help farmers. However, this backfired with an international trade war and only worsened the economic situation of not only the USA but also of other countries. -
Bank of United States failure
On December 11th the fourth largest bank, the Bank of United States, failed. It caused a mass panic which resulted in even more bank runs, where people went an wanted to deposit money from banks. -
FDR gets elected
Franklin Delano Roosevelt wins the 37th presidential election by a landslide against Herbert Hoover. -
New Deal
FDR launched the New Deal, with the Emergency Banking Act, forcing all banks in the nation to close to prevent any more failures and take necessary precautions. -
End of Prohibition
The Beer Wine Revenue Act ended Prohibition and taxed alcohol sales in order to maximize revenue. -
Social Security Act
The Social Security Act provided income to the elderly, the disabled, and single mothers. It was paid for with payroll taxes and is still operating today. -
Federal Emergency Relief Act
The Emergency Relief Appropriation created the Works Progress Administration to hire up to 8.5 million people. -
WW2
Once Hitler started the second World War, many unemployed Americans joined the military which caused the end of the Great Depression, as Americas economy finally reached a point where it could stabilize without having a risk of experiencing such things as the Great Depression once again.
