At this time the United States had no system of unemployment benefit. Those without work therefore faced great hardship. Due to their lack of money to buy goods, they could not help the economy to revive.
The Depression forced many Americans to use desperate methods to survive. Groups of unemployed men often prevented poor families who could not afford their rent from being evicted. They proved resourceful in providing help for themselves when the authorities did …show more content…
Others had to leave rented accommodation because they could no longer afford it. They moved into makeshift shelters constructed from packing cases and corrugated iron on the outskirts of cities. The shanty towns which resulted were nicknamed ‘Hoovervilles’ because many people blamed their homelessness on President Hoover.
During the Depression car production was cut by 80 percent. Road and building construction fell by 92 percent. Average hourly wages in manufacturing industry fell from 59 cents in 1926 to 44 cents in 1933. The total income of American farmers dropped from $12 billion to $5 billion per year. In 1932 farmers in the state of Iowa went on strike because the price they could obtain for their milk had dropped to 2 cents a quart.
In previous depressions, farmers were usually safe from the severe effects of a depression because they could at least feed themselves. Unfortunately, during the Great Depression, the Great Plains were hit hard with both a drought and horrendous dust storms, creating what became known as the Dust