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Federal Spending Grows
As a result of World Was I federal spending grew to 3 times that of tax collection, when the war ended the government cut back spending, kickstartimg the great depression. -
Tax Rate Lowers
The top tax bracket is lowered to 25%. -
Construction Boom Ends
A booming construction industry aiding the economy from earlier that decade ends. This results in the loss of construction jobs and takes a toll on the economy. -
Herbert Hoover Elected
Herbert Hoover is elected and left with the responsibility of trying to pull the country out of the depression. -
Recession Begins
The Recession begins, production declines by 20%, wholesale by 7.5%, and personal income by 5%. -
Black Tuesday
Stock Merket crashes resulting in $16 billion dollars in losses. -
Smoot-Hawley Tariff
The 40 percent tariffs works out to an effective tax of only 2.4 percent per citizen Due to imports forming only 6 percent of the GNP. This is compensated for by the fact that American businesses are no longer investing in Europe, but keeping their money stateside. The consensus of modern economists is that the tariff made only a minor contribution to the Great Depression in the U.S., but a major one in Europe. -
Bank Panic
A public run on banks results in a wave of bankruptcies. Bank failures and deposit losses are responsible for the contracting money supply. -
GNP and Unemployment Rate
The GNP falls 9.4 percent from the year before. The unemployment rate climbs from 3.2 to 8.7 percent. -
Second Bank Panic
A second banking panic occurs in the spring. -
GNP and Unemployment Rate
The GNP falls another 8.5 percent; unemployment rises to 15.9 percent. -
Roosevelt Takes Office
Popular opinion considers Hoover's measures too little too late. Franklin Roosevelt easily defeats Hoover in the fall election. Democrats win control of Congress. -
GNP and Unemployment Rate and Tax Rate
For 1932, GNP falls a record 13.4 percent; unemployment rises to 23.6 percent. Tax is increased from 25% to 63%. -
Third Bank Panic
A third banking panic occurs in March. Roosevelt declares a Bank Holiday; closes financial institutions to stop a run on banks. -
U.S. And Gold
The U.S. begins to go off the gold standard. -
Overthrowing Roosevelt
A group of millionaire businessmen, led by the Du Pont and J.P. Morgan empires, planed to overthrow Roosevelt with a military coup and install a fascist government. The businessmen tried to recruit General Smedley Butler, promising him an army of 500,000, unlimited financial backing, and generous media spin control; the plot is foiled when Butler reported it to Congress. -
GNP and Unemployment Rate
The free fall of the GNP is significantly slowed; it dips only 2.1 percent this year. Unemployment rises slightly, to 24.9 percent. -
Depression Worldwide
Sweden becomes the first nation to recover fully from the Great Depression. -
GNP and Unemployment Rate
The economy turns around: GNP rises 7.7 percent, and unemployment falls to 21.7 percent. -
GNP and Unemployment Rate
Economic recovery continues: the GNP grows another 8.1 percent, and unemployment falls to 20.1 percent. -
GNP and Tax Rate
Economic recovery continues: GNP grows a record 14.1 percent; unemployment falls to 16.9 percent.
Top tax rate raised to 79 percent. -
Another Recession
Economists attribute economic growth so far to heavy government spending that is somewhat deficit. Roosevelt, however, fears an unbalanced budget and cuts spending for 1937. That summer, the nation plunges into another recession. Despite this, the yearly GNP rises 5.0 percent, and unemployment falls to 14.3 percent. -
GNP Falls
The year-long recession makes itself felt: the GNP falls 4.5 percent, and unemployment rises to 19.0 percent. -
GNP Rises And War Starts
GNP rises 7.9 percent; unemployment falls to 17.2 percent. The United States will begin emerging from the Depression as it borrows and spends $1 billion to build its armed forces. From 1939 to 1941, when the Japanese attack Pearl Harbor, U.S. manufacturing will have shot up a phenomenal 50 percent! The Depression is ending worldwide as nations prepare for the coming hostilities.