Throughout the industrial world, cities were devastated during the Great Depression, beginning in 1929 and lasting through most of the 1930s. Worst hit were port cities (as world trade fell) and cities that depended on heavy industry, such as the steel and automotive industries. Service-oriented cities were hurt less severely. Political centers such as Canada, Texas, Washington, London and Berlin flourished during the Great Depression, as the expanded role of government added many new jobs.
Although the impact of the Great Depression on Great Britain was less severe than elsewhere, the industrial cities of the Midlands, the North, and Scotland were very hard-hit. [1]
Liverpool and Manchester, with years of high unemployment, had already acquired a reputation as highly depressed areas. City leaders fought back, and promoted a series of reforms and innovations in infrastructure that made them leaders in urban redevelopment. Such projects included the Wythenshawe Estate, the Mersey Tunnel and the Manchester Central Library. Promoters strongly emphasized how the redevelopment projects presented new images of Liverpool and Manchester. One goal was to integrate newly enfranchised voters, a strategy also employed by the Conservative Party to engage with the mass electorate. [2]
Canada's economy at the time was just starting to industrialize primary industries (agriculture, fishing, mining and logging) to manufacturing. Exports and prices of raw materials plunged, and employment, prices and profits fell in every sector. Canada was the worst-hit (after the United States) because of its economic position. It was further affected as its main trading partners were the U.S. and Britain.
The hardest-hit cities were the heavy industry centers of Southern Ontario. They included Hamilton (Canada's largest steel center), Toronto, Tilbury, and Windsor, an automotive manufacturing center linked to its larger neighbour, Detroit. In Ontario, unemployment skyrocketed to roughly 45%. [3]
The Prairie Provinces and Western Canada were among the hardest-hit; they fully recovered after 1939. The fall of wheat prices drove many farmers to the towns and cities, such as Calgary, Alberta, Regina, Saskatchewan, and Brandon, Manitoba.
Women held 25–30% of the jobs in the cities. [4] Few women were employed in heavy industry, railways or construction. Many were household workers or were employed in restaurants and family-owned shops. Women factory workers typically handled clothing and food. Educated women had a narrow range of jobs, such as clerical work and teaching. It was expected that a woman give up a good job when she married. [5] Srigley emphasizes the wide range of background factors and family circumstances, arguing that "gender" itself was typically less important than race, ethnicity, or class. [6]
During the Great Depression, different parts of Australian society experienced different hardships, challenges and opportunities. There was increased movement of many people to and from country areas in search of work. City and urban people planted gardens to produce fruit and vegetables. In some urban areas co-operatives were formed based on barter systems to share what was available. Shacks were built on the outskirts of large cities to house some who lost their homes. [7]
Singapore, at the time of British colony, was integrated into the world economy and suffered economic declines like other trading cities. However the people of Singapore were resilient in coping. Those who remained in the city used complex relationships among Chinese kinfolk; they shared food, housing, and clothing, and minimized the negative impacts. They spread work around, and provided an intelligence network to assist relatives in finding temporary employment. The safety valve of emigration to rural areas reduced the overall negative impact. [8] [9]
As saltpetre and copper exports collapsed levels of unemployment rose dramatically causing a migration of unemployed saltpetre miners from the north to Santiago. [10] Miners constituted around 6% of the active population but made up more than half of the unemployed during the crisis. [11] Numerous soup kitchens sprang up in Santiago while homeless people begun to dwell in caves in the hills around this city. [10]
By 1930 France remained a significantly rural society, with just a single city of over a million inhabitants (Paris), two more of over half a million (Lyon and Marseille), and fourteen more of over 100,000 inhabitants. The worldwide Great Depression had a moderate impact on the French economy, which proved resilient. Conditions worsened in 1931 bringing hardships and a more somber mood. Unemployment rose, and hours of work were cut; however the price of food sharply declined, offsetting some of the hardship. [12] The population of Paris declined slightly from its all-time peak of 2.9 million in 1921 to 2.8 million in 1936, with city-dwellers opting to return to the countryside to ride out the economic crisis among family. The arrondissements in the center lost as much as twenty percent of their population, while the outer neighborhoods, gained ten percent. The low birth rate of Parisians was compensated by a new wave of immigration from Russia, Poland, Germany, eastern and central Europe, Italy, Portugal and Spain. Political tensions mounted in Paris with strikes, demonstrations and confrontations between the Communists and Front populaire on the extreme left and the Action Française on the extreme right. [13]
In Germany, the depression had reached its worst in 1932, with 6 million unemployed, spread throughout every city. From 1928 to 1932 unemployment in Berlin soared from 133,000 to 600,000. In Hamburg, a port city, the numbers went from 32,000 to 135,000. In Dortmund, in the Ruhr industrial region, it went from 12,000 to 65,000. Berlin verged on political chaos as Communist and Nazi paramilitary forces fought for control of the streets. Overall the Nazis were weakest in the largest cities, which were controlled by Socialist and Communist parties (and in Catholic areas, the Center party). After 1933, the Nazi government greatly expanded arms production, which reduced unemployment. [14] [15]
Berlin, and the other cultural centers, were especially hard-hit. The publicly subsidized city and state theaters that were the center of cultural life took heavy cuts. After 1933, the Nazis imposed a new, heavily subsidized cultural order that glorified Nazi ideals and ridiculed the artistic achievements of the Weimar era. [16]
In Japan, the hardest hit sector was urban commerce and services, which declined 23 percent in 1928–1933, followed by agriculture which declined 12 percent. However, manufacturing experienced positive growth in nearly every year. The 1920s economically were sluggish in Japan, and the financial crisis began earlier there, as a major banking panic occurred in 1927. Recovery was stimulated by heavy government spending, especially for the Army and Navy. [17] Relief programs were focused on the politically important rural areas. Urban relief projects had low priority in the 1930s, since Tokyo had been heavily subsidized for rebuilding after the great 1923 earthquake. [18] Osaka used its own funds to expand new housing into suburban areas in the 1930s. [19]
The Soviet Union was largely cut off from world affairs, and during the 1930s was engaged in a very large scale maneuver to force peasants off the land and relocating them in industrial cities. Many factories, electrical plants, and transportation facilities were built along these lines. The most dramatic showpiece was the Moscow subway. The Moscow Metro opened in 1935 and immediately became the centerpiece of the transportation system. It became the prototype for future Soviet large-scale technologies. Lazar Kaganovich was in charge; he designed the subway so that citizens would absorb the values and ethos of Soviet civilization as they rode. The artwork of the 13 original stations became nationally and internationally famous. For example, the Sverdlov Square subway station featured porcelain bas-reliefs depicting the daily life of the Soviet peoples, and the bas-reliefs at the Dynamo Stadium sports complex glorified sports and the physical prowess of the powerful new "Homo Sovieticus." (Soviet man). [20] The metro was touted as the symbol of the new social order—a sort of Communist cathedral of engineering modernity. [21] Soviet workers did the labor and the art work, but the main engineering designs, routes, and construction plans were handled by specialists recruited from the London Underground. The Britons called for tunneling instead of the "cut-and-cover" technique, the use of escalators instead of lifts, and designed the routes and the rolling stock. [22] The paranoia of Stalin and the NKVD was evident when the secret police arrested numerous British engineers for espionage—that is for gaining an in-depth knowledge of the city's physical layout. Engineers for the Metropolitan Vickers Electrical Company were given a show trial and deported in 1933, ending the role of British business in the USSR. [23]
U.S. larger cities in the 1920s enjoyed strong growth. With the end of large-scale immigration, populations stabilized and the plentiful jobs in the cities pulled families upwards in terms of social mobility. Investment in office buildings, stores, factories, utilities, streets, and, especially, apartments and single-family homes, added substantially to the infrastructure, and contributed to the notion that better times lay ahead. However, after 1929, the optimism ebbed away, overwhelmed by a deepening pessimism that made long-term private investment seem inadvisable. The migration from rural areas to the cities, which had been strong in the 1920s, reversed itself as millions headed back to the family farm. [24]
The Depression's damage to large cities, suburbs, towns and rural areas varied according to the economic base. Most serious in larger cities was the collapse of the construction industry with new starts falling to less than 10% of the norm of the late 1920s. Although much needed work was deferred, maintenance and repair of existing structures comprised over a third of the private sector construction budget in the 1930s. Devastating was the disappearance of 2 million high paying jobs in the construction trades, plus the loss of profits and rents that humbled many thousands of landlords and real estate investors. [25]
Second came the general downturn in industry, especially heavy manufacturing. Steel in Pittsburgh, Pennsylvania, and Gary, Indiana, and automobiles in Detroit took the heaviest hits, along with railroads and coal mining. In these sectors, the largest cities suffered somewhat less than smaller mill towns, mining camps and railroad centers. Unemployment was a problem everywhere, but it was less severe among women than men, among workers in non-durable industries (such as food and clothing), in services and sales, and in government jobs. A sharp educational gradient meant that the less skilled inner city men had much higher unemployment rates than the high-school and college educated men who lived in outer zones and suburbs.
Although suburbia stopped growing, it did not suffer nearly as much as the central cities. While some unemployed came to the cities looking for relief, it appears that even larger numbers of unemployed returned to family farms. For the first time ever, the movement of native population was away from cities and toward rural America.
The fiscal soundness of city and county governments was challenged by the rise in relief expenditures and the sharp fall in tax collections. The Hoover Administration had encouraged state and local governments to expand public works projects, which they did in 1930 and 1931. While this expansion may have slowed the rise in unemployment, the spending was a luxury that could not be borne in the face of falling tax revenues and the unwillingness of investors to put more money into municipal bonds. After 1933, new sales taxes and infusions of federal money helped relieve the fiscal distress. Sharply depressed tax revenues meant that all city governments had to cut their budgets. Some of the revenue loss was replaced by the New Deal relief agencies. However, there was no direct federal aid to education, and public schools faced a hard decade. [26]
While local relief before 1932 focused on providing small sums of cash or baskets of food and coal for the neediest, the federal programs launched by Hoover and greatly expanded by the New Deal tried to use massive construction projects with prevailing wages to jumpstart the economy and solve the unemployment crisis. FERA, WPA and PWA built and repaired the public infrastructure in dramatic fashion but did little to foster the recovery of the private sector. In sharp contrast to Britain, where private housing construction pulled the country out of depression, American cities saw little private construction or investment, and so they languished in the economic doldrums even as their parks, sewers, airports and municipal buildings were enhanced. The problem in retrospect was that the New Deal's investment in the public infrastructure had only a small "multiplier" effect, in contrast to the high multiplier for jobs that private investment might have created. [27]
Franklin Delano Roosevelt had a magnetic appeal to the city dwellers—he brought relief and recognition of their ethnic leaders and ward bosses, as well as labor unions. Taxpayers, small business and the middle class voted for Roosevelt in 1936 but turned sharply against him after the recession of 1937-38 seemed to belie his promises of recovery. Roosevelt's New Deal Coalition discovered an entirely new use for city machines in his three reelection campaigns of the New Deal and the Second World War. Traditionally, local bosses minimized turnout so as to guarantee reliable control of their wards and legislative districts. To carry the electoral college, however, Roosevelt needed to carry the entire state, and thus needed massive majorities in the largest cities to overcome the hostility of suburbs and towns.
With Harry Hopkins his majordomo, Roosevelt used the WPA as a national political machine. Men on relief could get WPA jobs regardless of their politics, but hundreds of thousands of well-paid supervisory jobs were given to the local Democratic machines. The 3.5 million voters on relief payrolls during the 1936 election cast 82% of their ballots for Roosevelt. The vibrant labor unions, heavily based in the cities, likewise did their utmost for their benefactor, voting 80% for him, as did Irish, Italian and Jewish voters. In all, the nation's 106 cities over 100,000 population voted 70% for FDR in 1936, compared to his 59% elsewhere. Roosevelt won reelection in 1940 thanks to the cities. In the North, the cities over 100,000 gave Roosevelt 60% of their votes, while the rest of the North favored Willkie 52%-48%. It was just enough to provide the critical electoral college margin. With the start of full-scale war mobilization in the summer of 1940, the cities revived. The new war economy pumped massive investments into new factories and funded round-the-clock munitions production, guaranteeing a job to anyone who showed up at the factory gate. [28]
The American mafia and some other organized crime syndicates, which had emerged during Prohibition, usually retained power despite heavy pressure from the FBI and federal authorities. Those mob figures that had not been shut down by the authorities often already ran powerful business empires and, though the declining economy severely challenged them, the desperation of the unemployed and underemployed working class often increased their power and influence. Gambling, prostitution, and loansharking provided substitutes for illegal liquor.
Some cities managed to thrive during the Depression because of the economic activity generated by criminal enterprises. Atlantic City, long an established resort town, struggled during the Depression but managed to maintain a strong economy in large part due to illegal gambling activities with an unlimited supply of customers from Philadelphia and New York City. [29] Galveston, Texas was one of the most successful examples; the island city, Free State of Galveston, run by the Maceo syndicate, became a major resort town due to its lavish, illegal casino districts enabled by a corrupt law enforcement environment. [30] The small, desert town of Las Vegas, Nevada began to develop based on vice businesses during this period with the added advantage that laws there were much less strict. [31]
In the American colony of the Philippines, the Main political dispute over independence was settled by 1934 with the decision that the Philippines would become independent in 1946. The Great Depression was much less severe than in the United States, primarily because the sharp drop in the cost of food work to the benefit of the working class in the city. Washington provided much of the funding for a large middle-class bureaucracy and for major construction projects. [32]
Unemployment, according to the OECD, is people above a specified age not being in paid employment or self-employment but currently available for work during the reference period.
The Public Works Administration (PWA), part of the New Deal of 1933, was a large-scale public works construction agency in the United States headed by Secretary of the Interior Harold L. Ickes. It was created by the National Industrial Recovery Act in June 1933 in response to the Great Depression. It built large-scale public works such as dams, bridges, hospitals, and schools. Its goals were to spend $3.3 billion in the first year, and $6 billion in all, to supply employment, stabilize buying power, and help revive the economy. Most of the spending came in two waves, one in 1933–1935 and another in 1938. Originally called the Federal Emergency Administration of Public Works, it was renamed the Public Works Administration in 1935 and shut down in 1944.
The Civil Works Administration (CWA) was a short-lived job creation program established by the New Deal during the Great Depression in the United States to rapidly create mostly manual-labor jobs for millions of unemployed workers. The jobs were merely temporary, for the duration of the hard winter of 1933–34. President Franklin D. Roosevelt unveiled the CWA on November 8, 1933, and put Harry L. Hopkins in charge of the short-term agency.
The Works Progress Administration was an American New Deal agency that employed millions of jobseekers to carry out public works projects, including the construction of public buildings and roads. It was set up on May 6, 1935, by presidential order, as a key part of the Second New Deal.
The New Deal coalition was an American political coalition that supported the Democratic Party beginning in 1932. The coalition is named after President Franklin D. Roosevelt's New Deal programs, and the follow-up Democratic presidents. It was composed of voting blocs who supported them. The coalition included labor unions, blue-collar workers, big city machines, racial and religious minorities, white Southerners, and intellectuals. Besides voters the coalition included powerful interest groups: Democratic Party organizations in most states, city machines, labor unions, some third parties, universities, and foundations. It was largely opposed by the Republican Party, the business community, and rich Protestants. In creating his coalition, Roosevelt was at first eager to include liberal Republicans and some radical third parties, even if it meant downplaying the "Democratic" name. By the 1940s, the Republican and third-party allies had mostly been defeated. In 1948, the Democratic Party stood alone and survived the splits that created two splinter parties.
The history of the United States from 1917 to 1945 was marked by World War I, the interwar period, the Great Depression, and World War II.
The Great Depression in the United Kingdom also known as the Great Slump, was a period of national economic downturn in the 1930s, which had its origins in the global Great Depression. It was Britain's largest and most profound economic depression of the 20th century. The Great Depression originated in the United States in late 1929 and quickly spread to the world. Britain did not experience the boom that had characterized the U.S., Germany, Canada and Australia in the 1920s, so its effect appeared less severe. Britain's world trade fell by half (1929–33), the output of heavy industry fell by a third, employment profits plunged in nearly all sectors. At the depth in summer 1932, registered unemployed numbered 3.5 million, and many more had only part-time employment. However at the same time, from 1929 to 1933 employment dipped only to 94.9% relative to 1929 employment metrics and recovery was seen as early at 1933. The positive trend continued across real national income and wages. New houses built increased by 33% from 1929 to 1933, while profits, prices, export volume and value, and imports volume and value dropped. Overall, while all these metrics were concerning to parliament and businessmen along with devastating industrial regions, the common person especially in areas around London did not experience major hardship and even prospered.
The Federal Emergency Relief Administration (FERA) was a program established by President Franklin D. Roosevelt in 1933, building on the Herbert Hoover administration's Emergency Relief and Construction Act. It was replaced in 1935 by the Works Progress Administration (WPA).
The worldwide Great Depression of the early 1930s was a social and economic shock that left millions of Canadians unemployed, hungry and often homeless. Few countries were affected as severely as Canada during what became known as the "Dirty Thirties", due to Canada's heavy dependence on raw material and farm exports, combined with a crippling Prairies drought known as the Dust Bowl. Widespread losses of jobs and savings ultimately transformed the country by triggering the birth of social welfare, a variety of populist political movements, and a more activist role for government in the economy.
In the United States, the Great Depression began with the Wall Street Crash of October 1929 and then spread worldwide. The nadir came in 1931–1933, and recovery came in 1940. The stock market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth as well as for personal advancement. Altogether, there was a general loss of confidence in the economic future.
Fiscal policy is any changes the government makes to the national budget to influence a nation's economy. "An essential purpose of this Financial Report is to help American citizens understand the current fiscal policy and the importance and magnitude of policy reforms essential to make it sustainable. A sustainable fiscal policy is explained as the debt held by the public to Gross Domestic Product which is either stable or declining over the long term". The approach to economic policy in the United States was rather laissez-faire until the Great Depression. The government tried to stay away from economic matters as much as possible and hoped that a balanced budget would be maintained. Prior to the Great Depression, the economy did have economic downturns and some were quite severe. However, the economy tended to self-correct so the laissez faire approach to the economy tended to work.
The National Youth Administration (NYA) was a New Deal agency sponsored by Franklin D. Roosevelt during his presidency. It focused on providing work and education for Americans between the ages of 16 and 25. It operated from June 26, 1935 to 1939 as part of the Works Progress Administration (WPA) and included a Division of Negro Affairs headed by Mary McLeod Bethune who worked at the agency from 1936 to 1943. Following the passage of the Reorganization Act of 1939, the NYA was transferred from the WPA to the Federal Security Agency. In 1942, the NYA was transferred to the War Manpower Commission (WMC). The NYA was discontinued in 1943.
The recession of 1937–1938 was an economic downturn that occurred during the Great Depression in the United States.
The Great Depression in the Netherlands occurred between 1933 and 1936, significantly later than in most other countries. It was a period of severe economic crisis in the 1930s which affected countries around the world, including the Netherlands.
The Relief Appropriation Act of 1935 was passed on April 8, 1935, as a part of Franklin Delano Roosevelt's New Deal. It was a large public works program that included the Works Progress Administration (WPA), the National Youth Administration, the Resettlement Administration, the Rural Electrification Administration, and other assistance programs. These programs were called the "second New Deal". The programs gave Americans work, for which the government would pay them. The goal was to help unemployment, pull the country out of the Great Depression, and prevent another depression in the future. This was the first and largest system of public-assistance relief programs in American history, and it led to the largest accumulation of national debt.
Unemployment was the dominant issue of British society during the interwar years. Unemployment levels rarely dipped below 1,000,000 and reached a peak of more than 3,000,000 in 1933, a figure which represented more than 20% of the working population. The unemployment rate was even higher in areas including South Wales and Liverpool. The Government extended unemployment insurance schemes in 1920 to alleviate the effects of unemployment.
The Great Depression (1929–1939) was a severe global economic downturn that affected many countries across the world. It became evident after a sharp decline in stock prices in the United States, leading to a period of economic depression. The economic contagion began around September 1929 and led to the Wall Street stock market crash of 24 October. This crisis marked the start of a prolonged period of economic hardship characterized by high unemployment rates and widespread business failures.
The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1938. Major federal programs and agencies, including the Civilian Conservation Corps (CCC), the Works Progress Administration (WPA), the Civil Works Administration (CWA), the Farm Security Administration (FSA), the National Industrial Recovery Act of 1933 (NIRA) and the Social Security Administration (SSA), provided support for farmers, the unemployed, youth, and the elderly. The New Deal included new constraints and safeguards on the banking industry and efforts to re-inflate the economy after prices had fallen sharply. New Deal programs included both laws passed by Congress as well as presidential executive orders during the first term of the presidency of Franklin D. Roosevelt.
The Workers Alliance of America (WAA) was a Popular Front era political organization established in March 1935 in the United States which united several efforts to mobilize unemployed workers under a single banner. Founded by the Socialist Party of America (SPA), the Workers Alliance was later joined by the Unemployed Councils of the USA, a mass organization of the Communist Party USA (CPUSA), and by the National Unemployed Leagues originating with A.J. Muste's Conference for Progressive Labor Action (CPLA) and successor organizations.
The first term of the presidency of Franklin D. Roosevelt began on March 4, 1933, when he was inaugurated as the 32nd president of the United States, and the second term of his presidency ended on January 20, 1941, with his inauguration to a third term. Roosevelt, the Democratic governor of the largest state, New York, took office after defeating incumbent President Herbert Hoover, his Republican opponent in the 1932 presidential election. Roosevelt led the implementation of the New Deal, a series of programs designed to provide relief, recovery, and reform to Americans and the American economy during the Great Depression. He also presided over a realignment that made his New Deal Coalition of labor unions, big city machines, white ethnics, African Americans, and rural white Southerners dominant in national politics until the 1960s and defined modern American liberalism.