Quote Originally Posted by Hawkeye
eek! sorry for double post.
Just a question, where would the Great Depression have fallen into all of this? I don't remember it's exact causes...did World War I have a major effect on it? I'm wondering what would have happened if this alternate timeline you mentioned happened - would the effects of the Depression be felt more, or would it not have happened at all?
After WWI, because after the war, unlike the USA's allies, the stock market went in an immedaiate boom. Industires were procducing more goods and people were getting higher wages. But even though the market was in its bull session, the economy had underlying weaknesses. Farmers in particular, because of the low farm prices. Some people did not get higher wages, even though goods were growing and costing more. Those who couldnt afford didnt buy. Slowly this created slow demand and overproduction to the Great Depression.
Eventually, this led people to call in loans, and when people couldnt be able to pay back the loands, finacial panic came. Stock tumbled, and it came into debt with many investors, causing the Great Despression

The Great Depression began in 1929 when the entire world suffered an enormous drop in output and an unprecedented rise in unemployment. World economic output continued to decline until 1932 when it clinked bottom at 50% of its 1929 level. There was a Stock market crash (Black Monday) and this cause many a bank to go bankrupt. Back then, they had no FDAA insuring bank accounts (now if this happend we would be insured 100k per account - supposedly). So people just lost thier money they had in the bank.

This caused less spending at the lowerlevels, which caused vast losses at the high (er income) level. The effect was worsened when the manufacturors at the time would not lower thier prices, or take cuts at the top (Same thing happens to day - corprate scum). Firing workers cause morale, and productivity loss, untill we finally collapsed at 1932.

I must say, it was an amazing recovery though! No thanks to hoover

Bipper