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Depression
Historical
Overview
The stock market crash of October 1929 brought the economic prosperity of the 1920s to a symbolic end. For the next ten years, the United States was mired in a deep economic depression. By 1933, unemployment had soared to 25 percent, up from 3.2 percent in 1929. Industrial production declined by 50 percent, international trade plunged 30 percent, and investment fell 98 percent. The Depression transformed the American political and economic landscape. It produced a major political realignment, creating a coalition of big-city ethnics, African Americans, and Southern Democrats committed, to varying degrees, to interventionist government. It strengthened the federal presence in American life, spawning such innovations as national old-age pensions, unemployment compensation, aid to dependent children, public housing, federally-subsidized school lunches, insured bank depositions, the minimum wage, and stock market regulation. It fundamentally altered labor relations, producing a revived labor movement and a national labor policy protective of collective bargaining. It also transformed the farm economy by introducing federal price supports.
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This
site was updated on 09-Feb-10.
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