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The USA, c1920–55: Boom, Bust and Recovery

The spread of the depression, 1929–32

  • 3 things to know
  • Paper 2

Overview

Recall questions on the scale of unemployment and the fall in output, the bank failures, the Dust Bowl and the Okies, and the effect on black Americans.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

How far did national output fall?

Numbers

What happened to the banks?

Key term

How were workers affected by the Depression?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How high did unemployment rise during the Depression?

    Model answer

    To around 13 to 15 million by 1933, roughly a quarter of the workforce.

  2. 2

    Why was the collapse of the Bank of United States in December 1930 significant?

    Model answer

    With about $200 million in deposits it was then the largest bank failure in American history, and it spread panic among depositors across the country.

  3. 3

    How far did national output fall?

    Model answer

    GDP fell by about 30 per cent between 1929 and 1933, and industrial production nearly halved.

  4. 4

    What happened to the banks?

    Model answer

    Around 9,000 banks failed between 1930 and 1933, wiping out the savings of millions of depositors and destroying credit.

  5. 5

    How were workers affected by the Depression?

    Model answer

    Mass unemployment with no federal insurance, wage cuts for those in work, loss of homes, and reliance on charity and local relief that quickly ran out.

  6. 6

    How were farmers affected?

    Model answer

    Prices fell by around 60 per cent, incomes collapsed, and hundreds of thousands lost their farms to foreclosure.

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AThe government admitted 96 dead and 333 wounded.
BOther estimates run to several hundred dead.
COpponents claimed thousands.

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