Tuesday, November 18, 2008

The Great Depression!!

>A shanty town ship " Hooverville"
A mother of seven, aged 32 years only, photo taken in 1930s
Wall Street crash! Wall Street gone tumble tosser, consumers cut down their expenses pulling down the demands. Industries started layoffs, to cut down expenses. The demand further plunged due to escalating unemployment rate. So the Great Depression crept in.
The debtors could not repay their loans, banks began to fail. The depositors lost money; there was no deposit insurance in 1930s, as of now. 744 banks failed in the first ten months of 1930 losing $140 billion. Can you imagine, before the decade was over around 9000 banks failed in America!
Do you know what Hooverville, Hoover blanket, Hoover Flag, Hoover soup meant? In US during that turbulent time Herbert Hoover was the president. The battered people; who sold their houses and started living in shanties; created townships which were known as Hooverville. To brave the wintry cold they covered themselves with news papers, called Hoover blankets! They used to turn an empty pocket inside out, called Hoover flags! The poor in restaurants used to pour ketchups, salt, pepper into their water, called Hoover soup!So; you can imagine how the life was! That was the great depression.

Things took a better turn in 1933 when Franklin D. Roosvelt became president. He initiated new measures like work relief program for the unemployed, financial aids to farmers and business men. He fixed the minimum wages and maximum weekly working hours. Roosvelt encouraged trade unions and made business to work with government. However, restoration to normalcy took years , till the 2nd World War.

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