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The Great Depression Begins
It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers. -
Herbert Hoover becomes the 31st President of the United States.
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%. -
The stock market begins to crash
Black Thursday kicked off the stock market crash of 1929. Stock prices immediately fell 11%. Wall Street bankers bought stocks, so only 2% was lost by the time the market closed. -
The stock market plunges
On Black Tuesday, the market lost another 12% as a record 16 million shares were traded. When banks intervened this time, they worsened the panic. -
Banks Begin to Fail
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The Smoot-Hawley Tariff Act is passed
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. -
The Depression Worsens.
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Food riots broke out in Minneapolis
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. -
Unemployment Rises to 23.6 percent and over 10,000 banks have failed since 1929.
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Presidential candidate Franklin D. Roosevelt makes his "New Deal" speech.
The Democratic National Convention ended with a speech by Franklin D. Roosevelt called to "resume the country's interrupted march along the path of real progress, of real justice, of real equality for all of our citizens, great and small", and pledged "a new deal for the American people." -
The Bonus Army of U.S. eterans march on Washington and demand their bonus pay
President Hoover ordered the Secretary of War to disperse the protesters. Towards the late afternoon, cavalry, infantry, tanks and machine guns pushed the "Bonusers" out of Washington. The troops injured more than one hundred marchers in the process. -
Roosevelt is elected president.
The election took place against the backdrop of the Great Depression. Incumbent Republican President Herbert Hoover was defeated in a landslide by Democrat Franklin D. -
The First New Deal Begins
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The Emergency Banking Act becomes law
Franklin Delano Roosevelt launched the New Deal with the Emergency Banking Act. It closed all U.S. banks to stop devastating failures. -
The United States moves off the gold standard
FDR stopped a run on gold by abandoning the gold standard. He ordered everyone to exchange private gold for dollars. -
The Federal Emergency Relief Act and the Agricultural Adjustment Act are signed into law
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The Civil Works Administration created 4 million construction jobs.
Forty-eight dust storms pummeled Oklahoma and surrounding states. Farmers slaughtered 6 million pigs to reduce supply and boost prices. The public criticized the waste of food. FDR created the Federal Surplus Relief Corporation to use excess farm output to feed the poor. -
More Laws are Passed
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The Gold Reserve Act prohibited private ownership of gold and doubled its price
The act changed gold price history. -
Black Sunday was the worst dust storm ever
FDR passed the Soil Conservation Act to teach farmers sustainable methods. -
The SEC is established to regulate the stock market.
President Franklin D. Roosevelt signed the Securities Exchange Act, which created the SEC. This Act gave the SEC extensive power to regulate the securities industry, including the New York Stock Exchange. -
The Second New Deal Begins
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The Works Progress Administration is established
The Emergency Relief Appropriation created the Works Progress Administration to hire 8.5 million people. -
The Social Security Act is signed into law
FDR commended Congress for what he considered to be a “patriotic” act. Roosevelt had taken the helm of the country in 1932 in the midst of the Great Depression, the nation's worst economic crisis. -
Unemployment Falls to 16.9 percent
Unemployment fell by ⅔ in Roosevelt's first term (from 25% to 9%, 1933–1937). ... Much of the economy had recovered by 1936, but persistent, long-term unemployment lasted until rearmament began for World War II in 1940. -
The Supreme Court rules that the Social Security Act is constitutional
In one case, Steward Machine Co. v. Davis, the Court upheld the new unemployment compensation system. For the year, the economy grew 5.1%, unemployment fell to 14.3%, and prices rose 2.9%. The debt rose to $37 billion -
More FDR
DR 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. FDR cut spending to reduce the debt. That cutback in New Deal spending pushed the economy back into the Depression. FDR pushed Congress to enact a $5 billion relief program. -
Unemployment Rises to 19 percent
FDR abolished mark to market accounting. Some experts believed it forced many banks out of business. The rule forced banks to write down their real estate as values fell. FDR's new rule allowed them to keep these assets on their books at historical prices. -
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. -
World War II and the End of the Great Depression
The drought returned. Louisiana experienced record temperatures.
The Federal Security Agency was launched to administer Social Security, federal education funding, and food and drug safety. -
Hitler invaded Poland, starting World War II
The depression ends over the next several years as the U.S. builds up its armed forces.