Greatdepression

The Great Depression

By wcurry

  • Tariff Act

    Tariff Act
    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.

  • The bank of Tennessee failed

    The bank of Tennessee failed
    That led to failures of affiliate banks in the next few days. Although the economy was improving, weaknesses in the banking system pulled it back down. Only one-third of the nation's 24,000 banks belonged to the Federal Reserve banking system. Non-members did not have enough access to reserves to fend off bank runs. As bank failures grew, depositors rushed to banks to pull out their savings.

  • The Bank of the United States failed

    The Bank of the United States failed
    The Bank of the United States failed. It was the fourth-largest bank in the nation, and the largest bank failure in history at that time. Worried about budget deficits, Hoover returned the top income tax rate to 25%. The economy shrank 8.5%. The unemployment rate rose to 8.7%. Deflation set in as prices fell 6.4%.

  • Food riots broke out

    Food riots broke out
    The drought continued, hitting eight Southern states the worst. It was the worst drought in the 20th century for Arkansas.
    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.

  • Congress created the Reconstruction Finance Corporation

    Congress created the Reconstruction Finance Corporation
    lend $2 billion to financial institutions to prevent further failures. In July, Congress authorized it to lend money to states for relief.

  • Bank failures slowed

    Bank failures slowed
    Bank failures slowed, construction contracts increased 30% and department store sales rose 8 percent.
    Fourteen dust storms hit the Midwest. The economy shrank 12.9%, unemployment rose to 23.6%, and prices fell 10.3%.

  • Hoover signed the Revenue Act of 1932

    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.

  • Civil Works Adminiastration

    Civil Works Adminiastration
    The Civil Works Administration created four million construction jobs.

  • Black Sunday

    Black Sunday
    The worst dust storm ever. FDR passed the Soil Conservation Act to teach farmers sustainable methods.

  • Emergency Relief

    Emergency Relief
    The Emergency Relief Appropriation created the Works Progress Administration to hire 8.5 million people.

  • Hottest Summer

    Hottest Summer
    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.

  • Economy started contracting

    Economy started contracting
    The economy started contracting again,as the Depression resumed. For the year, the economy grew 5.1%, unemployment fell to 14.3%, and prices rose 2.9%. The debt rose to $37 billion.

  • The Economy Grew

    The Economy Grew
    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.

  • WW11

    WW11
    Hitler invaded Poland, starting World War II.The economy grew 8%, unemployment fell to 17.2%t, and prices remained flat. The debt rose to $40 billion.