McCann School of Business & Technology
The following essay examines unemployment, the reasons for which it Exists and the causes, which do not allow it ever to be zero. In this essay you will also read about The Great Depression how it impacted are economy and how it at related to the job rate as of today 2014 In my eyes the president Obama is very well leading are nation to another Great Depression Obama is indeed making history not only as the first black president but the worst president of all time!! Here you will see pictures and graphs to help understand the depression and what happen to the family’s what they had to do to survive. Unemployment
The problem of unemployment is one of the most serious long-term economic problem challenges in the past decades. Unemployment is a major cost to the economy not just in the terms of lost production, but it also involves major, long-term social cost such as increased inequality, poverty, family problems, crime and social division. One of the major economic debates of recent decades has been what should be done in order to reduce unemployment. There are major differences of opinion among economists about both what has caused the increasing level of unemployment during recent years, and what policies that might be used to reduce unemployment in the years to come. There are many explanations and arguments offered by economists, including: Wage rates are too high
Job losses are an inevitable result of new labor saving technologies. People do not have the opportunities for training and education. Economic growth is too low to generate adequate employment growth. Employees in developed countries cannot match the low paid people in Definition of Unemployment
The unemployment rate is the percentage of the US labor force that is unemployed. It is calculated by dividing the number of unemployed individuals by the sum of the number of people unemployed and employed. An individual is counted as unemployed if they are over the age of 16 and actively looking for a job, but cannot find one. Students, who choose not to work, and retirees, are not counted in the unemployment rate. In March 2001: was 4.3 percent, a tenth of a point increase from the January and February 2001 rate of 4.2%. The number of individuals employed decreased by 86,000. Description Total civilian population 211,171,000(Excluding those under 16, members of the military, and persons in institutions) - Not in Labor force 69,304,000 (Retired, students, individuals choosing not to work)= Labor force 141,868,000 (Total population minus those not in labor force)- Employed 135,780,000 (Individuals with jobs)= Unemployed 6,088,000 (Individuals without a job and actively searching) Unemployment Rate =6,088,000 135,780,000 + 6,088,000 = 4.3% The unemployment rate for the month of March 2001 was 4.3 percent, a tenth of a point increase from the January and February 2001 rate of 4.2%. The number of individuals employed decreased by 86,000. An unemployment rate of 4.3 percent for March 2001 is the highest unemployment rate since July 1999, but only slightly higher than the 3.9 to 4.1 percent range from October 1999 to the end of 2000. Prior to that, the unemployment rate had been in a steady decline since shortly after the last recession... Officially the unemployed are the people who are registered with the government as willing to work and able to work at a going wage rate but can’t find suitable employment despite an active search for work. Structural Unemployment
This type of unemployment exists even when there are job vaccines, due to the mismatch between skills of the registered unemployed and those required by the employers. People made redundant in one sector of the economy cannot immediately take up jobs in other sectors. Seasonal Unemployment
* Regular seasonal changes in employment/labor demand.
* Affects certain industries more than others e.g. catering and leisure, construction, retailing, tourism, agriculture. * Seasonal unemployment is not a major cause or concern.
* Frictional unemployment is transitional unemployment due to people moving between jobs: Includes people experiencing short spells of unemployment. * Includes new and returning entrants to the labor market
* Imperfect information about available job opportunities can lengthen the period of someone’s job search. * Frictional unemployment also affected incentives/disincentives to search and accept paid work * The unemployment trap may exist for some workers
This does not technically mean that everyone in the country has a job. There will always be some people out of work, either voluntarily early retirement, for exam...The unemployed rate is defined as the number of people who are employed plus the number of people who are unemployed, but are seeking work. The unemployment rate has dramatically increased to nine percent over the last couple months. It has created many complications for the American people. Although they have brought back over 7 million jobs, the United States still has a long ways to go until the economy is back on track. The unemployment rate is divided into variables; such as employment level, unemployment level, labor force and stock variables. At a certain time in a recession they are measured in quantities. Due to a flow of variables such as natural populations, net immigrations, new entrances, and retirements there is change to the labor force. The growth of jobs is a relief but with the percent that are still unemployed and the billions of dollars of debt that have been created are still not enough to get our economy growing. We have a lot of work to do before our economy gets stable and helps people become more confident Some people believe that recessions are neither good nor bad but simply part of the natural survival of the fittest in the business world. Actually, it is not true. In The Costs of Unemployment, the authors tell us both the good and bad influences of recessions. Recessions will cause unemployment because of the loss of output and GNP. Some people may argue that unemployment is a part of the functioning of the economy. They are partly right, for the unemployment is inevitable because of the dynamic economy. This kind of unemployment is called natural rate of unemployment©¤the sum of frictional and structural unemployment. However, this is only a part of unemployment. Because the firm’s cut back and produce less when they experience recessions, they will employ fewer workers. Therefore, the unemployment rate rises. This increase in unemployment caused by recessions and depressions is called cyclical unemployment. Recessions cause social consequences. During the recessions, the unemployed suffers a lot. The authors say that many people lost their savings as the stock market crashed and thousands of banks failed. What they can depend on is only the meager relief distributed by the government. In addition, ¡°prolonged unemployment may also bring with it a number of social and person ills: anxiety, depression, a deterioration of physical and psychological health, drug abuse, and suicide. Thirdly, recessions may lead to lost output in the future¡±. When the companies experience recessions, they will reduce their investment and produce fewer products. As we all know, the investment is very important to ¡°future economic growth and progress¡±. The more the investment is reduced, the longer we will spend on the growth of economy. On the other hand, recessions also have some benefits. First of all, recessions may reduce the rate of inflation. Secondly, in order to get survival in the recessions, companies must take some measures, such as trimming waste, managing resources better, and so on. Those who are inefficient will be driven out of business. Therefore, the efficiency is increased. Finally, ¡°recessions lead to a decrease in the demand for imports, which improves a nation balance of payment. Unemployment is the one constant throughout history. Despite changing technology, the underlying principles of why unemployment occurs remain the same. It’s also what continues to this day. The three main causes of unemployment are economic conditions, new technology, and increasing populations. Economic conditions are the main factor in unemployment. The 2008 economic crash caused unemployment to rise dramatically, and the same has been true of every economic slump throughout history. An economic crash causes businesses to fold and posts to disappear. If there isn’t enough money coming into a company, it can no longer afford to pay its employees. Once a company fails to pay its employees it has no choice but to let them go. Sometimes, it reduces its size in waves of redundancies or it simply shuts down. New technology also has an impact. As conventional tasks become more automated and more convenient, some employees find their posts obsolete. With no reason to continue paying them, they lose their jobs as the job simply disappears. It’s why the Swing Riots occurred in Britain during the 1830s. Workers fought against the introduction of threshing machines which would make many traditional jobs disappear. In the 21st century, the main threats are robotics and increasingly intelligent computers. Professional filing systems which require teams of people to maintain are now on a single computer server controlled by a single person. This is the form of unemployment which happens during prosperous times when companies can afford to invest in new technologies. Increasing populations often lead to unemployment at a slower rate. The numbers of unemployed have increased over the past few decades as the population has accelerated. To an extent, the increasing demand for goods and trade balances out the population increase, but businesses often fail to deal with the short-term consequences. Initially, many young humans aren’t yet old enough to need the economy to enlarge itself. It will take at least 20 years before the economy needs to respond to growing demand. Children generally don’t figure in the size of the economy or the need for jobs, on a large scale. It’s only when they become adult’s things starting to change. And it doesn’t always keep pace with the number of adults in society. There are simply not enough employment roles for the number of applicants. New technology and an increasing population generally go hand-in-hand. If technology remained the same the increasing population wouldn’t matter as the jobs would form naturally. The rescinding in the number of roles from multiple sides overwhelms the employment market and we finish with a shortfall in jobs. Unemployment seems like a complicated issue as people attempt to take complicated formulae into account. Really, it’s caused by the same three things it has always been caused by. Poor economic conditions, new technological advances, and an increasing population have and always will continue to perpetuate the problem of unemployment. The economic welfare of any country depends on the rate of the economic growth. There are several determinants or the factors for the economic development of a country like industrialization, agriculture, population; employment etc., one of the major indicator for the economic growth is employment rate, as it has an adverse impact on the whole economy. Whenever there is high degree of employment rate the production improves thereby increasing the standard of living (Anderson, 2006). High unemployment rate in a country leads to social and economic problems in the community as a whole. Economic problems result in less production of goods and services, less distribution of income, loss of tax revenues, fall in GDP rate etc. (www.economywatch.com). Social problems cause’s social ills and shows effect on individuals financially and psychologically. Individuals cannot meet their financial obligations on time and getting high stress which leads to problems like ill-health, premature death, suicides etc. (Clark, 2003) The economists describe unemployment as a condition of jobless within an economy. Unemployment is lack of utilization of resources and it eats up the production of the economy. It can be concluded that unemployment is inversely related to productivity of the economy. The history of unemployment is directly related to history of industrialization. It leads to unwanted job losses and willing workers without job. It is worthwhile to mention here that not everyone who is out of work is seen as unemployed. A person with a large fortune not looking a job is not counted in the unemployed population in that he is not willing to work in the first place, though he’s officially out of work. As such unemployment refers to the inability for willing workers to find gainful employment. One of the major indicators of the economic health of the country is the degree of unemployment. The impact is of high unemployment is seen in the difficulty in finding mid-level jobs. The fact is that minimum wage level jobs are adequate but not considered as gainful employment of the majority of the workforce (Anderson, 2006). Moreover, the effects of unemployment are social, too, not just economic. Frequently, crime rates rise as people are unable to meet their needs through work. Divorce rates often rise because people cannot solve their financial problems. The rate of homelessness rises, as do the rates for mental and physical illness. Homes are foreclosed upon or abandoned, and neighborhood’s deteriorate as a result. When there is high unemployment, people pay less in income taxes and also pay less in sales taxes because they purchase fewer goods and services. As such unemployment is not a good thing for anyone in our society, and even the people who remain employed will suffer as a result (www.economywatch.com). The study will enable the governments to take initiatives to increase the productivity for overall development and reduction in unemployment. The study of unemployment will provide a comparative data between public and private sector. It also gives indication of under employment in private and public sectors. These factors become basis for the formulation of the monetary policies of the country for the future years. Unemployment generally defined as the number of persons (It is the percentage of labor force depends on the population of the country) who are willing to work for the current wage rates in society but not employed currently. Unemployment reduces the long run growth potential of the economy. When the situation arises where there are more other resources for the production and no man power leads to wastage of economic resources and lost output of goods and services and this has a great impact on government expenditure directly. High unemployment causes less consumption of goods and services and less tax payments results in higher government borrowing requirements. The impact of the unemployment is seen with the individuals and household curtailing the consumption drastically to meet financial obligation and factors like this have adverse impact on the whole economy. It also reduces the output of goods and services which could have produced by unemployed labor force. An economy is producing substantially below its potential if unemployment rate is extremely high, thus everybody in the society loses by consuming and enjoying less because less is produced for distribution (www.economywatch.com). Many economists have done research studies to alleviate this problem and to find solutions. In this study we will discuss about the causes for unemployment, challenges to government and individuals to alleviate this problem. This report gives you the overview of the social effects of unemployment and the challenges ahead for the situation. CAUSES FOR UNEMPLOYMENT
There are several causes for unemployment and it depends on prevailing conditions of economy and also on individual’s perception. The following are some of the causes for unemployment: Change in technology is one of the serious causes for unemployment. The technology changes employers search for people with latest technical caliber. They look for better substitutes. Job cuts due to change in the technology brings unemployment problem in the society. Recession is prime factor for unemployment in most of the countries. Because of the financial crisis in one country can affect the other countries economy due to globalization. Changes in the global Markets are another important factor. Any country economy adversely affect when its exports are down the line due to changes in global markets, and increase in price. With this production suffers and companies unable to pay on time and this increases the rate of unemployment. Job dissatisfaction by many employees is another cause, this happens when less attention given by the employers on the performance of employee. This leads to lack of interest and desire to work and unemployment becomes inevitable, as employees deliberately lose their jobs. Employment discrimination based on the caste, religion, race etc., in the companies, an employee loses the ease to work in the organization. Negative attitude by the employees toward the employers creates unhealthy environment in the organization. And this ultimately leads to unemployment (www.blacksacademy.net). Effect on Economy
Unemployment rate depends on the economy to economy. In developed countries like United States and Europe the unemployment rate considered to be low because many people are self-employed people and working in agriculture. In countries where there are less self-employed more population with less resources causes unemployment. Unemployment affects the economy adversely as the productivity falls below the normal level. When there is high rate of unemployment in the country, government has to suffer extra borrowing burden due to decrease in the production and less consumption of goods and services by the people. Not only the unemployed people consume less its even employed has weak purchasing power due to fear about their loss of their jobs. Unemployed not working and not contributing for income generation of the economy, but also they claim benefits from the government and it is an additional cost for the economy as a whole. Social Effects
Not only unemployment problem suffers the economy, even there are many social affects too. The following are some of the social effects of unemployment: Loss of skills: when there is unemployment in the society, people lose their skills due to no usage and it causes human capital loss. Mental illness: There will be loss of self-confidence, frustration, negative attitudes towards common things when there is loss of income, and a person’s self-esteem gets hurt due to these mental illnesses. Financial obstacles: Unemployment brings financial obstacles in the family. People cannot meet their financial obligations on time and it brings frustration among family members, brings tension at home and may leads to suicides .Increase crime rate: When there is unemployment in the society crime rate increases. When people don’t have disposable income they can go to any extent like theft, robbery and also murders in order to survive their livelihood. Political instability: Due to unemployment people lose trust on government and their administration and this may bring political instability. Insecurity among existing employees: when the economy is facing unemployment problem it brings insecurity among the existing employees and their purchasing power decreases due to fear or insecurity on their jobs. Poor standard of living: Unemployment causes poor standard of living as competition for jobs will increase and people accept for less salaries and their standard of living will decrease due to their low income. Employment Gap: Unemployment brings employment gap in the companies for hiring a suitable person and for an individual who is out of job has to find another one in difficult situations. This brings the gap in income generation (www.enotes.com; www.economywatch.com). CHALLENGES TO GOVERNMENT
Several policies have been made to reduce the unemployment problem in the economy. Government just needs to focus on execution of these policies and work out hard in alleviating this problem. Government can expand capital projects like new roads, constructions of new hospitals and major infrastructural projects which can become a platform in creation for more jobs in the economy. It increases income generation to the economy. Reduction in taxation can bring higher purchasing power to the consumers. It gives some relaxation to consumers in spending their disposable income. Government should take proper steps in investment decisions on huge projects like iron and steel, aviation etc., proper policies are to be made to boost up these projects thereby creating employment opportunities. Proper recruitment, training and development are to be needed by every company in order to increase the capabilities of employees, and to enhance their skills and shows great performance in upbringing of the organization. Government can take initiation in reducing the interest rates and it enhances the demand for credit and improves savings by the individuals. Necessary steps are to be taken by the government in increasing the productivity for the overall development of the country and reducing the unemployment problem in the economy CHALLENGES TO INDIVIDUALS
It is not only the responsibility of the government to take initiation in reducing the unemployment problem, even individuals has to take step to overcome this problem. Lot of adjustments are to be done by the individuals to come out of this situation. Without taking hasty decisions like suicide, frustration they can plan and do proper adjustments like debt adjustments, expend their liquid assets when it is required, cut down their expenditures and also encourage other family members to find jobs so that they can compensate in income generation. An individual has to increase their capabilities and participate in proper counseling and training sessions to improve their performance levels and enhance their skills. They have to think about self-employment apart their job with the help of their family members. This also improves their standard of living. CONCLUSION
Unemployment is a serious issue for any economy. It creates negative affects to unemployed as they are jobless and suffer from worse prospects to find new job and those who are employed feel less secure to keep their jobs in future. However for overall development of economy, government and individuals has to take initiative steps in increasing the productivity and improving the standard of living. PA Unemployment Rate Falls to 5.7% in April
Harrisburg - Today, the Pennsylvania Department of Labor & Industry released its employment situation report for April 2014. Pennsylvania's seasonally adjusted unemployment rate declined by three-tenths of a percentage point in April to 5.7 percent, the lowest rate since September 2008. The commonwealth's rate was six-tenths of a percentage point below the U.S. rate of 6.3 percent, which was down by four-tenths of a point from March. The state rate was down 1.9 percentage points from its April 2013 rate of 7.6 percent. Pennsylvania’s civilian labor force — the number of people working or looking for work — was essentially unchanged in April. Resident employment, however, was up 23,000, marking the eighth consecutive gain and the fourth straight increase exceeding 10,000. The number of unemployed residents decreased by 22,000 its lowest level since September 2008. This was the ninth consecutive decline and one of the largest on record. Total nonfarm jobs grew by 10,900 in April to reach 5,768,800, the highest level since October 2008. The gain was concentrated in the private sector, which added 11,600 jobs while public sector jobs fell by 700. The largest gain was in professional & business services (+8,100), which reached a record high at 759,000 jobs. Construction also added a large amount of jobs in April, up 6,500, the third gain in the last four months. Over the year, total nonfarm jobs in Pennsylvania were up 34,400 (+0.6%). The growth was primarily within private industries, with the largest gains in leisure & hospitality (+14,600) and professional & business services (+12,700). PA Unemployment Rate Dips to 6.0% in March
Harrisburg - Today, the Pennsylvania Department of Labor & Industry released its employment situation report for March 2014 Pennsylvania’s seasonally adjusted unemployment rate declined by two-tenths of a percentage point in March to 6.0 percent, the lowest rate since October 2008. The commonwealth’s rate was seven-tenths of a percentage point below the U.S. rate, which was unchanged from February at 6.7 percent. The state rate was down 1.7 percentage points from its March 2013 rate of 7.7 percent Pennsylvania’s civilian labor force – the number of people working or looking for work –increased by 12,000 in March to 6,442,000. Resident employment was up 19,000, the third consecutive gain exceeding 10,000. The number of unemployed residents, which trended downward for the eighth consecutive month, was down by 8,000 in March to 390,000. Total nonfarm jobs were down by 8,400 in March to 5,758,900. The decline was concentrated in the private sector, as government jobs remained at their February level. The largest drop was in professional & business services (-5,000), which fell below the record high level set in February. Leisure & hospitality, financial activities (-2,200), and education & health services (-2,000) also each had declines of 2,000 or more jobs. Trade, transportation & utilities (+1,700) and other services (+1,200) showed significant growth in March. Manufacturing, up 1,300, added jobs following four consecutive monthly declines. Over the year, total nonfarm jobs in Pennsylvania were up 17,200 (+0.3%). The growth was primarily within private service-providing industries. The largest gains were in leisure & hospitality (+14,300) and professional & business services (+5,700)( www.paworkstats.pa.gov)
Unemployment Insurance (UI) benefits are good for both the economy and families. That’s a timely lesson of U.S. history since the Civil War. From the recurring crises of the late nineteenth century (now called the “Long Depression” of 1873 to 1896) to the worldwide catastrophe of the 1930s, Americans learned the hard way that failure to support the jobless in bad times makes things worse. Our forebears discovered that unemployment insurance holds up consumer demand, hence businesses, in a faltering economy. The system is particularly vital to sustaining the small businesses that serve consumers and are pivotal to the larger economy’s health. It’s worked for almost 80 years. In the current recession, Census Bureau data reveal that unemployment benefits kept 3.3 million Americans out of poverty in 2009—and countless small businesses afloat. With economic recovery underway but still precarious, now is not the time to ignore the hard-earned wisdom of history. Yet lately some business groups and conservative elected officials have proposed changes in our system of unemployment compensation that would undercut its effectiveness. The N.C. Chamber of Commerce, for example, has called for cutting maximum weekly payments by one-quarter and the duration of benefits by more than one-fifth, while failing to ensure the future solvency of the system with adequate employer tax levels. A few legislators are even seeking an end to the federal-state system we’ve had since the 1930s: they would shift responsibility to those least able to bear it, the unemployed themselves. To know why these ideas are bad and would produce unnecessary harm, it helps to know where the current system came from. Most directly, it came from the Social Security Act of 1935, which provided for unemployment insurance along with old age pensions and other measures to stabilize the economy and improve the well-being of citizens. But behind passage of the SSA were three generations of learning. Wealthy Americans in the late nineteenth-century first tried blaming the victims of the new industrial order. A punitive school of thought called “Scientific Charity” alleged that poverty resulted from laziness or vice. Its practitioners sought ways (hence the “science”) to distinguish those few who were “worthy” of modest alms from the “unworthy.” Yet as Panic followed Panic, and upright, hard-working men and women were reduced to begging or becoming tramps to survive high and chronic unemployment, lived experience discredited the Social Darwinism of Scientific Charity by the 1890′s.Suffering on this scale fueled rebellion, too: mass strikes, the Knights of Labor, the People’s (Populist) Party, and socialists and anarchist organizations of all descriptions. In 1894, “Coxey’s Army” marched on Washington to demand, in the name of “the Commonweal in Christ,” that the government help the jobless. The unrest roused clergy, scholars, reformers, and some far-sighted business leaders to action. Over the Progressive Era, they studied systemic unemployment. They discovered that it came, not from any fault of those whose jobs disappeared, but from the boom-and-bust cycle endemic to capitalism. If America wanted the benefits of markets in the flush times, people like the economist John Commons and the settlement house worker Jane Addams concluded, the nation must also deal with the wreckage of the downturns. They learned that the best strategy was unemployment insurance, an idea fine-tuned but not implemented until a new crisis hit. The Great Depression put one employee in four out of work. The scale of suffering was staggering. Private charity funds were soon exhausted; municipal relief funds went dry. Desertion rates soared as humiliated former breadwinners left their families. Malnutrition spread among children. Millions rallied to Huey Long’s “Share our Wealth” plan; others flocked the Townsend movement for old-age pensions. Thousands joined the Communist Party, on the left, and, on the right, the proto-fascist Silver Shirts. One third of the nation tuned in to the right-wing populist sermons of the anti-Semitic radio priest Father Coughlin. Franklin Delano Roosevelt and his Secretary of Labor, Frances Perkins, understood that doing nothing was not an option. The market could not fix itself. Thanks to the crisis, Nazis were on the move in Western Europe and Stalin was consolidating power in Eastern Europe. The omens were bleak. It was in this context—of mass suffering and mounting unrest—that the White House and Congress worked out the contours of the Social Security Act, one of the greatest legislative achievements of the century. How has its unemployment insurance component worked? Very well on balance. Since the 1930s, the federal government has never allowed the floor to fall out from under the economy as it did then. Generations of Americans have benefited from the economic stability it helped produce. We’re in the fix we are now, many leading scholars agree, because of the loss of other smart New Deal era policies that corporate lobbyists persuaded Washington to drop: namely, regulations such as Glass-Seagulls that held risky behavior on Wall Street in check. Do we really want to listen, again, to corporate lobbyists who seek to shift reasonable burdens from themselves onto citizens at large, particularly those already struggling to regain their footing in a slippery economy? – ( http://pulse.ncpolicywatch.org/2012/05/22/a-brief-history-lesson-on-the-importance-of-unemployment-insurance/#sthash.7lzaY93o.dpuf).The trading floor of the New York Stock Exchange just after the crash of 1929. On Black Tuesday, October twenty-ninth, the market collapsed. In a single day, sixteen million shares were traded--a record--and thirty billion dollars vanished into thin air. Westinghouse lost two thirds of its September value. DuPont dropped seventy points. The "Era of Get Rich Quick" was over. Jack Dempsey, America's first millionaire athlete, lost $3 million. Cynical New York hotel clerks asked incoming guests, "You want a room for sleeping or jumping?"
Police stand guard outside the entrance to New York's closed World Exchange Bank, March 20, 1931. Not only did bank failures wipe out people's savings, they also undermined the ideology of thrift.
Unemployed men vying for jobs the American Legion Employment Bureau in Los Angeles during the Great Depression.
World War I veterans block the steps of the Capital during the Bonus March, July 5, 1932 (Underwood and Underwood). In the summer of 1932, in the midst of the Great Depression, World War I veterans seeking early payment of a bonus scheduled for 1945 assembled in Washington to pressure Congress and the White House. Hoover resisted the demand for an early bonus. Veteran’s benefits took up 25% of the 1932 federal budget. Even so, as the Bonus Expeditionary Force swelled to 60,000 men, the president secretly ordered that its members be given tents, cots, army rations and medical care. In July, the Senate rejected the bonus 62 to 18. Most of the protesters went home, aided by Hoover's offer of free passage on the rails. Ten thousand remained behind, among them a hard core of Communists and other organizers. On the morning of July 28, forty protesters tried to reclaim an evacuated building in downtown Washington scheduled for demolition. The city's police chief, Pelham Glassford sympathetic to the marchers, was knocked down by a brick. Glassford's assistant suffered a fractured skull. When rushed by a crowd, two other policemen opened fire. Two of the marchers were killed.
Philipinos cutting lettuce, Salinas, California, 1935. Photographer: Dorothea Lange. In order to maximize their ability to exploit farm workers, California employers recruited from China, Japan, the Philippines, Puerto Rico, Mexico, the American south, and Europe.
Farmer and sons, dust storm, Cimarron County, Oklahoma, 1936. Photographer: Arthur Rothstein. The drought that helped cripple agriculture in the Great Depression was the worst in the climatological history of the country. By 1934 it had desiccated the Great Plains, from North Dakota to Texas, from the Mississippi River Valley to the Rockies. Vast dust storms swept the region.
Part of an impoverished family of nine on a New Mexico highway. Depression refugees from Iowa. Left Iowa in 1932 because of father's ill health. Father an auto mechanic laborer, painter by trade, tubercular. Family has been on relief in Arizona but refused entry on relief roles in Iowa to which state they wish to return. Nine children including a sick four-month-old baby. No money at all. About to sell their belongings trailer for money to buy food. "We don't want to go where we'll be a nuisance to anybody." Children of migrant workers typically had no way to attend school. By the end of 1930 some 3 million children had abandoned school. Thousands of schools had closed or were operating on reduced hours. At least 200,000 children took to the roads on their own. Summer 1936. Photographer: Dorothea Lange.
During the Great Depression, unemployment was high. Many employers tried to get as much work as possible from their employees for the lowest possible wage. Workers were upset with the speedup of assembly lines, working conditions and the lack of job security. Seeking strength in unity, they formed unions. Automobile workers organized the U.A.W. (United Automobile Workers of America) in 1935. General Motors would not recognize the U.A.W. as the workers' bargaining representative. Hearing rumors that G.M. was moving work to factories where the union was not as strong, workers in Flint began a sit-down strike on December 30, 1936. The sit-down was an effective way to strike. When workers walked off the job and picketed a plant, management could bring in new workers to break the strike. If the workers stayed in the plant, management could not replace them with other workers. This photograph shows the broken windows at General Motors' Flint Fisher Body Plant during the Flint sit-down strike of 1936-37. Unemployed workers in front of a shack with Christmas tree, East 12th Street, New York City. December 1937.
Part of the daily lineup outside the State Employment Service Office. Memphis, Tennessee. June 1938.
Members of the picket line at King Farm strike. Morrisville, Pennsylvania. August 1938. In contrast to a frequently racist society, several unions were militantly integrationist
The public’s response to Roosevelt’s programs were viewed in high favor. It seemed like he was handling things very quickly and efficiently. It was with the ending of prohibition and the handling of the bank emergencies, that gave the American people faith in him. It also helped him that many people viewed him as a trusted figure. People needed faith with dealing with the Depression, and the economic turmoil that the United States was in. Roosevelt was able to enter almost every American who owned a radios home, in a way that no other president before him could. I believe the artist, after hearing him like so many other, believed that with the changes that have been made so far and so quickly, Roosevelt New Deals were worth believing. This image was drawn days after the Bank Holiday was proposed by Roosevelt when he first came into office.
One of the major catalysts of the Great Depression was the stock market crash in October of 1929. The market lost $40 billion dollars in value in two months, which is at that time over 40% of the Gross Domestic Product of US in 1929. The crash led to widespread panic selling which fueled further declines in the market. Business conditions became bleak, leading to high unemployment rate. Black Tuesday was one the days when the market crashed and lost 12%, marking the beginning of the great depression. The market bottomed in 1932, after losing 89% of its value from its peak three years earlier. During the Great Depression, unemployment was high. Many employers tried to get as much work as possible from their employees for the lowest possible wage. Workers were upset with the speedup of assembly lines, working conditions and the lack of job security. Seeking strength in unity, they formed unions. Automobile workers organized the U.A.W. (United Automobile Workers of America) in 1935. General Motors would not recognize the U.A.W. as the workers’ bargaining representative. Hearing rumors that G.M. was moving work to factories where the union was not as strong, workers in Flint began a sit-down strike on December 30, 1936. The sit-down was an effective way to strike. When workers walked off the job and picketed a plant, management could bring in new workers to break the strike. If the workers stayed in the plant, management could not replace them with other workers. This photograph shows the broken windows at General Motors’ Flint Fisher Body Plant during the Flint sit-down strike of 1936-37. The breadlines during the Great Depression are some of the most symbolic characteristics of the Great Depression. The breadlines were unusually long and crowded, despite of the fact that the agency was providing little bread to each individual. Although most of people on the breadline were capable laborers, the lack of employment opportunities made them unable to make any production and forced them to wait on a crowded line for most of the day-time. It was quite tragic, since many capable workers were forced to accept the little ration provided by the government. Certain city folks found it unbearable and relocated themselves to rural areas to farm, in hope of using their labor to produce actual food. The two images above are illustrations of the long, crowded breadlines during the Great Depression. The first picture depicts the breadline on a cold day, in which many people wear wearing heavy jackets and hiding their hands in the pockets. They have no other choice other than waiting there. They could not produce food in the city (or not fast enough, since growing vegetation in the backyard cannot guarantee a stable food source), so they had no choice but to accept their only stable source of food. On the other hand, the second picture portrays the irony of America’s economic collapse. Just several years ago, the Americans were celebrating the lavish lifestyle and liberal behaviors of the Roaring Twenties; however, by the time of the depression, Americans no longer had the money and leisure to enjoy their freedom and the world’s highest standard of living. Nothing remained but the ad board, which ironically depicted their faded prosperity during the age of wide-scale poverty. During The Great Depression conditions in America were horrible. Now, I know we think we had it bad the past few years, but that does not even compare to how bad it was in the early 20th century. Most people had no work. Now, I am not strictly talking about unskilled workers, but rather many professionals did not have work as well. Everyone was looking for jobs and nobody was able to support their family. In order to even attain some food people would wait on these breadlines. The lines were hundreds, or thousands, of people lined up waiting to get a small portion of food given out for free. This is what a majority of America had to resort too. People couldn’t afford housing either. Some lived in cardboard boxes. and others lived in houses that were not much better. Shown in the picture is a village of tiny, dinky shacks that was set up in New York’s Central Park. While nearly impossible, I hope the two pictures that I posted give you an idea of the poverty present in The Great Depression
Roosevelt won the office of President of the United States of America in November 1932, by a landslide over incumbent Herbert Hoover. When he took office in March 1933, he wasted no time in following through on his campaign promises. FDR’s “First Hundred Days” saw a whirlwind of activity as Roosevelt worked tirelessly, then and throughout his three terms, to pull America out of the Great Depression. President Roosevelt’s New Deal programs were designed to tackle the economic crisis on many levels: •federal assistance for people who had lost their jobs, houses, savings, and livelihoods •job creation for the unemployed through massive public works projects •agricultural assistance for troubled farmers
•manufacturing assistance for troubled industries
•stricter banking regulations to prevent bank failures
•creation of the FDIC to protect bank customers’ deposits •investment in the banking system to free up credit
While FDR’s New Deal efforts might have helped keep the Great Depression from becoming even worse than it was, only World War II finally healed the economy. War-related exports, as well as America’s own preparation with munitions and ammunition, fired up the factories again and effectively ended the Great Depression, almost twelve years after it began in 1929 The Dust Bowl during the Great Depression led to widespread migration, including 200,000 people who moved to California, most arriving with no money, family, or resources. -Economic conditions that led to the Great Depression began in the early 1920s, but most people think of the stock market crash of 1929 as the start of the Great Depression. -The Great Depression lasted from 1929 to 1941 and only ended with America’s entry into World War II. -Franklin D. Roosevelt’s New Deal programs employed hundreds of thousands of workers, many who were unskilled. One of the most famous New Deal programs was the Civilian Conservation Corps (CCC), and these workers are credited improving dozens of US National Parks. -Drought conditions of the Dust Bowl were prevalent in most of the years of the Great Depression, but the term was actually coined in April 1935. -At its highest point during the Great Depression, unemployment was 25% in 1933. -The Federal Deposit Insurance Corporation (FDIC) was formed in 1934, to ensure bank deposits and restore Americans’ confidence in banking. -Before the start of the Great Depression, there were 25,000 banks in the United States. By 1933, almost half of those banks (11,000) had failed. -When Dust Bowl conditions devastated farmers, many defaulted on their bank loans, which helped lead to widespread bank failure. -President Franklin D. Roosevelt steered America through most of the Great Depression years, taking office in March 1933, and serving four terms, dying in office in April 1945. -President Roosevelt (FDR) dedicated his first 100 days in office in 1933 to addressing America’s economic distress, with aggressive lawmaking and aid programs, all of which Congress passed. -Europe’s slow recovery from World War I contributed to a global recession in the 1920s and 1930s that added to the Great Depression’s reach in the United States. -Panic was rampant during the Great Depression years, including Americans curtailing all unnecessary spending and starting runs on banks, which led to President Franklin D. Roosevelt’s famous line, “Only thing we have to fear is fear itself.” At its highest point during the Great Depression, unemployment reached 25% (in 1933).The Great Depression began in 1929 and ended in 1941 when America prepared to enter World War II. Social Security, a program that continues to this day, was introduced by Franklin D. Roosevelt in the midst of the Great Depression. The “Roaring Twenties” weren’t roaring for everyone. By 1929, 1% of Americans controlled 40% of the wealth in this country. The Federal Deposit Insurance Corporation (FDIC) was formed in 1934 to insure deposits in banks and restore customers’ faith in the American banking system. The Dust Bowl years spanned 1930-1936, when a million acres of farmland across the Plains became worthless due to severe drought and over farming. After the stock market crash in 1929, it took 27 years to reach pre-crash levels. In 1939, the unemployment rate in America had dropped from a high of 25% to 15%, largely due to the New Deal programs introduced by Franklin D. Roosevelt. Tuesday, October 29, 1929 is known as Black Tuesday because of the plunge the stock market took, and it largely symbolizes the start of the Great Depression, though the economy had been in decline for at least six months prior to that date. By 1933, more than 11,000 of the nation’s 25,000 American banks had shuttered victims of the Great Depression. Homerville’s were the catchphrase for the shantytowns that cropped up across the United States, as homeless Americans improvised with scraps, abandoned cars, and packing crates. At its highest point during the Great Depression, unemployment reached 25% (in 1933).The Great Depression began in 1929 and ended in 1941 when America prepared to enter World War II. The Great Depressions of 2008 and 2009 undoubtedly would have been worse without the $700 billion and $770 billion stimulus packages from President Bush and President Obama (not to mention bailouts of the automakers, AIG, and Fannie Mae and Freddie Mac).In March 2012, it was reported that 4 out of 15 of the major U.S. banks (including Citigroup) wouldn’t survive another severe recession, much less a depression. Photos of the Great Depression depict farmers coping during the Dust Bowl years, FDR work programs, and people standing in line at soup kitchens. Photos that would capture today’s depression include real estate and foreclosure signs, unemployed people at job fairs, and several generations of families living under the same roof. Franklin D. Roosevelt’s “First Hundred Days” took place in March, April, and May of 1933 and marked his attempt to stem the economic bloodbath that the Great Depression had become. Herbert Hoover, the 31st President of the United States, served from 1928-1932, and many economists cite his lax monetary and fiscal policies as a cause of the Great Depression. References
www.paworkstats.pa.gov: http://pulse.ncpolicywatch.org/2012/05/22/a-brief-history-lesson-on-the-importance-of-unemployment-insurance/#sthash.7lzaY93o.dpuf http://www.english.illinois.edu/maps/depression/photoessay.htmhttp://blsciblogs.baruch.cuny.edu/his1005spring2011/tag/great-depression/