I've been reading a lot of "gobbly gook" economics from both the Liberals and Conservatives - much of it is mis-information or information which artfully neglects to include facts, especially historical facts. Worst of all is the media who are doing a true dis-service to the public by very shoddy journalism. The TV network news and cable news outlets are simply horrendous sources for reliable and accurate information. Just keep in mind one key point when you are watching "the news," it's NOT the "news" that is important it's the RATINGS.
Today - this is August 2011, we are NOT "sailing in uncharted waters" or dealing with issues radically different from the past. Of course 2008 was very different from 1929 but as in the past the country did not "hit bottom" until 1932. Being 2011 one must ask, have we 'Hit Bottom' yet?
America in 2011 is very different
from 1932, but the specter of 1937
may be looming in our future.
As I BEGIN this thread it is worth noting these miscellaneous yet significant points from the Great Depression which are sourced from Wikipedia
Effects of Depression in the U.S.:
- 13 million people became unemployed. In 1932, 34 million people belonged to families with no regular full-time wage earner.
- Industrial production fell by nearly 45% between 1929 and 1932.
- Home building dropped by 80% between the years 1929 and 1932.
- In the 1920s, the banking system in the U.S. was about $50 billion, which was about 50% of GDP.
- From 1929 to 1932, about 5,000 banks went out of business.
- By 1933, 11,000 of the US' 25,000 banks had failed.
- Between 1929 and 1933, U.S. fell around 30%, the stock market lost almost 90% of its value.
- In 1929, the unemployment rate averaged 3%.
- In 1933, 25% of all workers and 37% of all nonfarm workers were unemployed.
- In Cleveland, the unemployment rate was 50%; in Toledo, Ohio, 80%.
- Over one million families lost their farms between 1930 and 1934.
- Corporate profits had dropped from $10 billion in 1929 to $1 billion in 1932.
- Between 1929 and 1932, the income of the average American family was reduced by 40%.
- Nine million savings accounts had been wiped out between 1930 and 1933.
- 273,000 families had been evicted from their homes in 1932.
- There were two million homeless people migrating around the country.
- Over 60% of Americans were categorized as poor by the federal government in 1933.
- In the last prosperous year (1929), there were 279,678 immigrants recorded, but in 1933 only 23,068 came to the U.S.
- In the early 1930s, more people emigrated from the United States than immigrated to it.
- With little economic activity there was scant demand for new coinage. No nickels or dimes were minted in 1932?33, no quarter dollars in 1931 or 1933, no half dollars from 1930?32, and no silver dollars in the years 1929?33.
- The U.S. government sponsored a Mexican Repatriation program which was intended to encourage people to voluntarily move to Mexico, but thousands, including some U.S. citizens, were deported against their will. Altogether about 400,000 Mexicans were repatriated.
- New York social workers reported that 25% of all schoolchildren were malnourished. In the mining counties of West Virginia, Illinois, Kentucky, and Pennsylvania, the proportion of malnourished children was perhaps as high as 90%.
- Many people became ill with diseases such as tuberculosis
- The 1930 U.S. Census determined the U.S. population to be 122,775,046. About 40% of the population was under 20 years.
More to come....