Effects of the Depression

Effects of the Depression 

Unemployment + collapse of GDP

- Between October + December 1929, unemployment rose from 500,000 to 4 million

- By 1933, when Roosevelt came into office 15 million unemployed (doesn't include part-time)

- Real wages in USA 1929-31 fell by 16%

- Construction fell by 79% 1929-31

- Investment went down 92% 1929-31

- GDP fell drastically 1929-33 

- These problems worsened by fact that gov. reluctant to intervene - Hoover believed economic downturn would be short-lived so intervention not necessary. Republican administration reluctant to change laissez-fair policie - believed it would lead to economic recovery as it had contributed…