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The cartoon star Mickey Mouse appears on November 18th in Steamboat Willie, an animated 1928 short film produced by Walt Disney. Still appears on TV today.
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Herbert Hoover became president. His laissez-faire economic policies did little to stop the Depression. He believed a free-market economy would allow the forces of capitalism to fix any economic downturn. As a result, he lowered the top income tax rate from 25% to 24%.
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Hoover signed the Smoot-Hawley Tariff Act, which raised taxes on 900 imports. It originally was supposed to help farmers but ended up imposing tariffs on hundreds of other products. Other countries retaliated, setting off a trade war. As a result, international trade began to collapse.
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The economy shrank 6.4%. The unemployment rate rose to 15.9%. Prices fell another 9.3% People began to suffer the worst effects of the Great Depression.
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Hoover signed the Revenue Act of 1932. It increased the top income tax rate to 63%. He wanted to reduce the federal deficit. Hoover believed it would also restore confidence. Instead, higher taxes worsened the Depression.
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Franklin Delano Roosevelt launched the New Deal with the Emergency Banking Act. It closed all U.S. banks to stop devastating failures.
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The Gold Reserve Act prohibited private ownership of gold and doubled its price. The act changed gold price history.
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The Supreme Court declared the National Industrial Recovery Act unconstitutional. FDR launched more programs focused on the poor, the unemployed, and farmers.
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The hottest summer on record began. Eight states experienced temperatures at 110 degrees or greater. Throughout the year, the heat wave directly killed 1,693 people. Another 3,500 people drowned while trying to cool off.
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FDR began his second term. He launched a third New Deal. The Wagner-Steagall Act funded state-run public housing projects. The Bonneville Power Administration delivered and sold power from the Bonneville Dam. The Farm Tenancy Act provided loans for tenant farmers to buy farms. The Farm Security Administration replaced the Resettlement Administration.
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The economy started to grow again. The Great Depression was over.
For the year, the economy shrank 3.3%. Unemployment rose to 19%. Prices fell 2.8%. The debt remained steady at $37 billion. -
Hitler invaded Poland, starting World War II.
