Please enable JavaScript.
Coggle requires JavaScript to display documents.
Effects of the Great Depression - Coggle Diagram
Effects of the Great Depression
African Americans
Last hired, First hired
Experienced highest unemployment rate during 1930's
Had lowest paid jobs
Suffered almost double and triple the amount of unemployment than whites
Received substantially less aid than whites
Government
Laissez-Faire
Established unemployment compensation
Social Security Act
Old age insurance
Survivors insurance
Workers
Many lost job
The closure of one factory could affect all sorts of other businesses
No workers to eat at local restaurants
Lost saved money due to banks
13 million people lost their jobs by 1932
In the labor force, 25% were unemployed
In the steel making city of Cleveland, 50% of workers were unemployed by 1932
In Toledo, car-making town, 80% were unemployed
Factory production dropped by 45% between 1929 and 1932
12,000 people a day were losing their jobs by 1932
House building fell by 80%
Banks
Loaned out huge amount of money in 1920's
Loans were spent buying shares
People were unable to pay loans back
Banks went bankrupt
Managers and staff lost their jobs, causing unemployment
People could not sell their shares and pay back the banks in full
Ordinary people who had savings in the banks went bankrupt
In 1929, 659 banks collapsed
In 1930, 1352 banks went bankrupt
In 1931, 2294 banks collapsed
Business/Industry
20,000 companies went out of business by 1932
Factories were over producing goods
Under consumption
Forced to cut production, then wages, then began to sack workers
People weren't buying much due to a decrease in wages
Suffered alot
Farmers
Had been losing money for years
Farming methods meant that they produced too much food
Dropped food prices to try sell excess
Had equipment loans from back and couldn't afford to pay it back
Could not afford to pay debts and mortgages
Faced losing their farm
Having to sack their workers
1932, one in 20 farmers were evicted