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9 Principle Effects of the Great Depression

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9 Principle Effects of the Great Depression

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The Great Depression of 1929 devastated the U.S. economy. A third of all banks failed. Unemployment rose to 25%, and homelessness increased. Housing prices plummeted, international trade collapsed, and deflation soared. It took 25 years for the stock market to recover.

While the Great Depression took a huge toll on the U.S., there were a few good things that came from it. For example, the New Deal programs installed safeguards to make it less likely that the Depression could happen again.

Overall, the Great Depression had a tremendous impact on nine principal areas of the U.S. economy, which are outlined below.

Economy and Gross Domestic Product (GDP)

During the first five years of the depression, the economy shrank by 50%. In 1929, economic output was $105 billion, as measured by gross domestic product (GDP). That's equivalent to more than $1 trillion today.

The economy began shrinking in August 1929. By the end of the year, one-third of all banks had failed. In 1930, the economy shrank by another 8.5%, according to the Bureau of Economic Analysis (BEA). GDP growth declined 6.4% in 1931 and 12.9% in 1932. By 1933, the country had suffered at least four years of economic contraction. It only produced $57.2 billion, half what it produced in 1929.

Part of the contraction was due to deflation. According to the Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI), which is used as a measure of inflation, fell by 25% between 1929 and 1933. Falling prices sent many firms into bankruptcy.

New Deal spending boosted GDP growth by 10.8% in 1934. It grew by another 8.9% in 1935, 12.9% in 1936, and 5.1% in 1937.

Unfortunately, the government cut back on New Deal spending and the depression returned, causing the economy to shrink by 3.3% and the unemployment rate to jump to 19% in 1938.

Preparations for World War II sent growth up by 8% in 1939 and by 8.8% in 1940. The next year, Japan bombed Pearl Harbor, and the United States entered World War II. Annual GDP growth jumped to 17.7%.

The New Deal and spending for World War II shifted the economy from a pure free market to a mixed economy. It depended much more on government spending for its success. The timeline of the Great Depression shows this was a gradual-though necessary-process.

The Depression affected politics by shaking confidence in unfettered capitalism. That type of laissez-faire economics is what President Herbert Hoover advocated, and it had failed.

As a result, people voted for President Franklin D. Roosevelt (FDR). His Keynesian economics promised that government spending would end the Depression. The New Deal worked. In 1934, the economy grew, and unemployment declined.

But FDR became concerned about adding to the U.S. debt. In 1933, the national debt was $22.5 billion, and by 1934, it was $27 billion. He cut back government spending by 1938, and the Depression resumed.

No one wants to make that mistake again. Politicians now tend to rely instead on deficit spending, tax cuts, and other forms of expansionary fiscal policy. Because of that, the U.S. national debt has increased to a very high level.

The Depression ended as government spending ramped up for World War II at the end of the 1930s and early 1940s. This change in spending led to the belief that military spending is good for the economy. However, since then, the government and economists have found that military spending is not a top way to create jobs.

The Dust Bowl drought destroyed farming in the Midwest. It lasted 10 years-too long for most farmers to hold out. To make things worse, prices for agricultural products dropped to severely low levels. As farmers left in search of work, they became homeless. Thousands of people with no money gathered in "cardboard shacks" called Hoovervilles.

In 1933, Prohibition was repealed. That allowed the government to collect taxes on sales of now-legal alcohol. FDR used the money to help pay for the New Deal.

The Depression was so severe and lasted so long that many people thought it was the end of the American Dream (the idea of guaranteed rights to pursue one's own vision of happiness). Instead, it changed that dream to include a right to material benefits.

Unemployment

In 1928, the final year of the Roaring Twenties, unemployment was 4.2%. That's less than the natural rate of unemployment. By 1930, it had more than doubled to 8.7%. By 1932, it had increased to 23.6%. It peaked in 1933, reaching up to around 25%. Almost 15 million people were out of work. That's the highest unemployment rate ever recorded in America.

New Deal programs helped reduce unemployment to 21.7% in 1934, 20.1% in 1935, 16.9% in 1936, and 14.3% in 1937. But less robust government spending in 1938 sent unemployment back up to 19%. It remained above 10% until 1941, as you can see when looking at the unemployment rate by year.

During the Depression, a third of the nation's banks failed. By 1933, 4,000 banks had failed. As a result, depositors lost $140 billion.

People were stunned to find out that banks had used their deposits toinvest in the stock market. They rushed to take their money out before it was too late. These "runs" forced even good banks out of business. Fortunately, that rarely happens anymore.

Stock Market

The stock market lost 90% of its value between 1929 and 1932. It didn't recover for 25 years. People lost all confidence in Wall Street markets. Businesses, banks, and individual investors were wiped out. Even people who hadn't invested lost money. Their banks invested the money from their savings accounts.

As countries' economies worsened, they erected trade barriers to protect local industries. In 1930, Congress passed the Smoot-Hawley tariffs, hoping to protect U.S. jobs.

Other countries retaliated. That created trading blocs based on national alliances and trade currencies. World trade plummeted by 66% (as measured in dollars) between 1929 and 1934. By 1939, it was still below its level in 1929.

Imports from Europe declined greatly between 1929 and 1932, dropping to $390 million from $1.3 billion at the start of the Depression. Exports to Europe also declined to $784 million from $2.3 billion during that same time.

Prices fell by 30% between 1930 and 1932. Deflation helped consumers whose income had fallen, but it hurt farmers, businesses, and homeowners because mortgage payments hadn't fallen by 30%. As a result, many defaulted on home loans. Homeowners lost everything and became migrants looking for work wherever they could find it.

Below you can see the CPI per year as an annual percent change:

Long-Term Impact

The success of the New Deal made many Americans expect that the government would save them from any economic crises. During the Great Depression, people relied on themselves and each other to pull through. The New Deal signaled that they could rely on the federal government instead.

FDR modified the gold standard to protect the dollar's value. That set a precedent for President Richard Nixon to end it completely in 1973.

The New Deal Public Works Administration (PWA) built many of today's landmarks. Iconic buildings include the Chrysler Building, Rockefeller Center, and Dealey Plaza in Dallas. Bridges include San Francisco's Golden Gate Bridge, New York's Triborough Bridge, and the Florida Keys' Overseas Highway. Other Depression-era public works include La Guardia Airport, the Lincoln Tunnel, and Hoover Dam. Also, three entire towns were constructed: Greendale, Wisconsin; Greenhills, Ohio; and Greenbelt, Maryland.

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How the Great Depression Still Affects You Today

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The Great Depression of 1929 devastated the U.S. economy. A third of all banks failed. Unemployment rose to 25%, and homelessness increased. Housing prices plummeted, international trade collapsed, and deflation soared. It took 25 years for the stock market to recover.

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Baruch College CUNY Professor's Blog about the Great Depressionhttps://blogs.baruch.cuny.edu/his1005spring2011/tag/the-great-depression/

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The Great Depression | Modern American History

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Examination of the 1939 Academy Awards

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Hollywood has arguably never had such a remarkable year as 1939. The studios released some of its most popular and accomplished films, including the best picture Oscar winner "Gone With the Wind," the beloved musical fantasy "The Wizard of Oz" and John Ford's seminal western "Stagecoach," which turned B actor John Wayne into a major player.

Ten films earned Academy Award nominations for that year's best picture. In addition to the three above titles, there were the Bette Davis tear jerker "Dark Victory," the sentimental drama "Goodbye, Mr. Chips," the romantic drama "Love Affair," the romantic comedy "Ninotchka," the tragic "Of Mice and Men," the romantic "Wuthering Heights" and the political drama "Mr. Smith Goes to Washington."

"I think what made that such a great year was the depth of it," said film historian and author Joseph McBride ("Searching for John Ford," "Frank Capra: The Catastrophe of Success"). "It's like a baseball team with a great bench. You have the films that were nominated, then you have all these other great films too. Some that weren't nominated for best picture are better than some that were."

Among McBride's personal nominees for films that were honored undeservedly is "Dark Victory," which stars Davis in her Oscar-nominated role as a wealthy woman with a brain tumor who falls in love and marries her doctor (George Brent). "I always thought it pretty hokey," McBride said. "It's one of those films you look back and you kind of scratch your head over why it got so much prestige. I am not against melodrama, but she made a lot better films."

But there are several films on the nomination list that remain strong - and relevant.

As Hollywood was celebrating the banner year, World War II broke out on Sept. 1 with the Nazi invasion of Poland. It was in that tense political landscape that three films in particular seemed to have something powerful to say: Ford's "Stagecoach," Ernst Lubitsch's "Ninotchka" and Frank Capra's "Mr. Smith Goes to Washington."

"These filmmakers were galvanized by the urgency of things going on in the world." Ford was in the Navy Reserve, McBride pointed out. "He knew the war was coming, and he was going to serve. He made these three Americana films. As I write in my book that was the year John Ford discovered America. He made 'Stagecoach,' 'Young Mr. Lincoln' and 'Drums Along the Mohawk' - all patriotic films that remind us of our bedrock American values that we would soon be fighting for."

"Stagecoach," which earned seven Oscar nominations (winning two, for the score and for supporting actor for Thomas Mitchell), also "changed the whole western," said McBride. "I think it was [French critic] Andre Bazin who said it took all the archetypal western themes and did them to perfection."

On the surface, "Ninotchka" is a sophisticated romantic comedy starring Greta Garbo in her Oscar-nominated performance as a hard-line Russian sent on a mission to Paris only to fall in love with a capitalist (Melvyn Douglas).

But the film is more complex than it seems. "It deals with issues we still care about, which is totalitarianism versus the individual," McBride said. "It's kind of a timeless film, though it is very specifically anti-Stalin. Lubitsch made this film with a lot of personal conviction. He went to Russia in the late '30s and was appalled about what he saw of Stalinism."

"Mr. Smith Goes to Washington," which revolves around a sweetly naive young man (James Stewart) who is appointed to fill a vacancy in the U.S. Senate and discovers political corruption in the Capitol, earned 11 Oscar nominations and won for best story, the original screenplay prize of its day.

"It's a very stirring patriotic film and maybe the best political film ever made," McBride said.

But "Smith" raised more than a few eyebrows when it premiered for politicos in Washington. In fact, Joseph Kennedy, ambassador to Britain and father of President John F. Kennedy, tried to get Columbia Pictures to not release the film in Europe.

"He thought it would be a bad [portrayal] of America," said McBride. "The film is quite a scathing portrait of corruption, but you have this idealist who overcomes it. Capra admitted to me that he thought 'Mr. Smith' was his best film, not 'It's a Wonderful Life.' "'
Twitter: @mymackie

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The Envelope: Film's golden year, 1939, included 'Gone With the Wind,' 'Wizard of Oz'

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Hollywood has arguably never had such a remarkable year as 1939. The studios released some of its most popular and accomplished films, including the best picture Oscar winner "Gone With the Wind," the beloved musical fantasy "The Wizard of Oz" and John Ford's seminal western "Stagecoach," which turned B actor John Wayne into a major player.

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Internationally known childhood star Shirley Temple was one of the most influential pop culture figures of her time.

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Shirley Temple (born April 23, 1928, Santa Monica, California, U.S.-died February 10, 2014, Woodside, California) was an American actress and public official who was an internationally popular child star of the 1930s, best known for sentimental musicals. For much of the decade, she was one of Hollywood's greatest box-office attractions.

Encouraged to perform by her mother, Temple began taking dance lessons at age three and was soon appearing in Baby Burlesks, a series of one-reel comedies in which children were cast in adult roles. In 1934 she gained recognition in her first major feature film, the musical Stand Up and Cheer!, and later that year she had her first starring role, in Little Miss Marker, a family comedy based on a short story by Damon Runyon. Her other credits from 1934 included Change of Heart; Now I'll Tell, which starred Spencer Tracy as a gambler; and Now and Forever, a romantic drama featuring Gary Cooper and Carole Lombard. However, it was arguably Bright Eyes (1934) that propelled her to stardom. The musical was specifically made for Temple-who was cast as an orphan, which became a frequent role-and in it she sang one of her most popular songs,"On the Good Ship Lollipop." Many claimed that Bright Eyes saved Fox Film Corporation from bankruptcy. By the end of 1934 Temple was one of Hollywood's top stars, and the following year she received a special Academy Award for her outstanding contribution to screen entertainment in 1934. Temple's popularity was partly seen as a response to the Great Depression. With her spirited singing and dancing and her dimples and blond ringlets, Temple and her optimistic films provided a welcome escape from difficult times.

Temple became Hollywood's top box-office attraction in 1935, and she held that honour through 1938. During that time she starred in such hits as The Little Colonel (1935), the first of several musicals featuring dancer Bill Robinson; Curly Top (1935); John Ford's Wee Willie Winkie (1937); Heidi (1937), based on the children's book by Johanna Spyri; and Rebecca of Sunnybrook Farm (1938). Her overwhelming popularity resulted in the creation of a doll made in her likeness and a nonalcoholic beverage named for her.

By the end of the 1930s, however, Temple's popularity had begun to wane, and her last big hit was The Little Princess (1939). After The Blue Bird (1940) failed to attract a large audience, her contract with 20th Century-Fox was dropped. In 1945, at the age of 17, she married John Agar, who launched an acting career of his own while Temple appeared in The Bachelor and the Bobby-Soxer (1947), with Cary Grant and Myrna Loy, and That Hagen Girl (1947), with Ronald Reagan. In 1949 Temple made her last feature film, A Kiss for Corliss. She later made a brief return to entertainment with a popular television show, Shirley Temple's Storybook, in 1957-59 and the less successful Shirley Temple Show in 1960.

After her marriage to Agar ended in 1949, Temple married (1950) businessman Charles A. Black. As Shirley Temple Black, she became active in civic affairs and Republican politics. In 1967 she ran unsuccessfully for a seat in the U.S. House of Representatives. From 1969 to 1970 she was a delegate to the UN General Assembly. Diagnosed with breast cancer in 1972, Black was one of the first celebrities to go public about having the illness. She then served as U.S. ambassador to Ghana (1974-76), chief of protocol for U.S. Pres. Gerald Ford (1976-77), and member of the U.S. Delegation on African Refugee Problems (1981). From 1989 to 1992 she served as ambassador to Czechoslovakia. At the beginning of the 21st century, Black remained active in international affairs, serving on the board of directors of the Association for Diplomatic Studies and the National Committee on U.S.-China Relations, among other organizations.

In recognition of her acting career and public service, Black received a Kennedy Center Honor in 1998, and the Screen Actors Guild presented her with a life achievement award in 2005. Her autobiographies include My Young Life (1945) and Child Star (1988).

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Shirley Temple | Biography, Movies, & Facts

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Shirley Temple, American actress and public official who was an internationally popular child star of the 1930s, best known for such sentimental musicals as Bright Eyes, The Little Colonel, and Curly Top. For much of the decade, she was one of Hollywood's greatest box-office attractions.

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Baby Face Nelson, Partner-in-Crime of John Dillinger

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Baby Face Nelson, Partner-in-Crime of John Dillinger

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"Baby Face" Nelson was born Lester M. Gillis on December 6, 1908, in Chicago, Illinois. He roamed the Chicago streets with a gang of juvenile hoodlums during his early teens. By the age of 14, he was an accomplished car thief and had been dubbed "Baby Face" by members of his gang due to his juvenile appearance. Nelson's early criminal career included stealing tires, running stills, bootlegging, and armed robbery.

In 1922, Nelson was convicted of auto theft and was committed to a boys' home. Two years later, he was released on parole, but within five months he was returned on a similar charge.

In 1928, Nelson met a salesgirl, Helen Wawzynak, whom he married. His wife retained the name Helen Gillis throughout their marriage.

Nelson was sentenced to a prison term of one year to life for his January, 1931, bank robbery in Chicago, Illinois. After a year's confinement, Nelson was removed from the Illinois State Penitentiary, Joliet, Illinois, to stand trial on another bank robbery charge in Wheaton, Illinois. On February 17, 1932, Nelson escaped prison guards while being returned to Joliet. After a brief stay in Reno, Nevada, he fled to Sausalito, California. There he meet John Paul Chase, with whom he would be closely associated for the rest of his life.

John Paul Chase (pictured), born December 26, 1901, lived most of his life in California. He attended school through fifth grade, then worked at a ranch near San Rafael, California. Chase later worked in railway shops for four years, first as an office boy, then as a machinist's apprentice. In 1930, Chase became associated with a liquor smuggling operation comprised of persons with underworld connections.

When Nelson arrived in California, Chase still was involved with the liquor smuggling gang. Nelson worked with Chase as an armed guard for the truck used to illegally transport liquor. The two men became close friends, and Chase frequently introduced Nelson as his half-brother.

Nelson was joined by his wife and remained in California until May, 1933. While Chase stayed in Sausalito, Nelson departed to Long Beach, Indiana, where he lived for several months. While in Indiana, Nelson met several criminals, including Homer Van Meter, and occasionally accompanied them to San Antonio, Texas. Nelson may have made his original connection with the Dillinger gang during this period.

In December, 1933, Nelson contacted Chase and they remained together for almost a year. During this time, a man was shot and killed in Minneapolis. The perpetrators were reportedly in an automobile bearing California license plates which were eventually traced to a car owned by Nelson.

After a short trip to Bremerton, Washington, Nelson and Chase proceeded to Reno, Nevada. Chase later reported in an interview that Nelson killed a man during an altercation while they were in Reno. The victim was a material witness in a United States Mail Fraud case.

In April, 1934, Nelson, Helen Gillis and John Paul Chase went to Chicago, Illinois, where they joined the Dillinger gang. While Chase remained in Chicago, Nelson and his wife vacationed with the Dillinger gang at the Little Bohemia Lodge in northern Wisconsin.

The Federal Bureau of Investigation (FBI) learned of the gang's location on April 22, 1934, and special agents proceeded to the Little Bohemia Lodge. Barking dogs alerted the gangsters to the impending FBI raid. The gangsters escaped in the dark, leaving a few women associates, including Helen Gillis, behind.

Nelson fled to a nearby home and forced his way in with two hostages. Shortly thereafter, Special Agents J. C. Newman and W. Carter Baum arrived at the scene with a local constable. When their car stopped, the diminutive Nelson, who stood only five feet four inches high and weighed 133 pounds, rushed to the car and ordered the occupants to get out. Before they could comply, Nelson shot all three men, instantly killing Special Agent Baum with a series of shots from his automatic pistol.

Within a short time, Chase rejoined Nelson. Helen Gillis, who had been released on parole, met her husband and Chase about a month later. They lived near Lake Geneva, Wisconsin, for several days. On June 23, 1934, Attorney General Homer S. Cummings offered a reward for Nelson's capture or information leading to his arrest.

A robbery of the Merchants National Bank, South Bend, Indiana, occurred on June 30, 1934, in which a police officer was shot and killed. "Baby Face" Nelson, John Dillinger, and Homer Van Meter participated in the actual robbery. Following the robbery, the gangsters fled to Chicago, Illinois. Later two police officers were shot on Wolf Road, outside Chicago, when Nelson opened fire as they approached the gang's meeting place.

Notorious gangster leader John Herbert Dillinger was shot and killed on July 22, 1934. Following Dillinger's death, Nelson, Helen Gillis and Chase left Chicago for California with two associates. That summer, Nelson and Chase made numerous trips between Chicago and California. On one occasion, they were arrested for speeding in a small town. They paid the $5 fine at the police station and were released. Their car, containing machine guns, rifles and ammunition, was not searched.

In late August, the group returned to Chicago. Within a month, Nelson went to Nevada and Chase traveled to New York City. Nelson and Chase again joined forces near Minden, Nevada, on October 10, 1934. They proceeded to Chicago, where they stole a car on November 26, 1934, and drove to Wisconsin.

Inspector Samuel P. Cowley of the FBI's Chicago Office had been assigned to search for Nelson. On November 27, 1934, Cowley received word that Nelson had been seen driving a stolen car. Two Special Agents spotted the vehicle near Barrington, Illinois. Nelson brought his car around behind the Agents, and Chase fired five rounds from an automatic rifle into the Agents' car. One of the Agents returned fire and one shot pierced the radiator of Nelson's car, partially disabling it.

Inspector Cowley and Special Agent Herman Edward Hollis approached in another automobile and began pursuing Nelson and Chase. Suddenly, Nelson veered off Northwest Highway at the entrance to the North Side Park in Barrington, Illinois, and stopped. Before Cowley and Hollis could get out of their car, Nelson and Chase began firing automatic weapons at them.

Special Agent Hollis was killed during the gun battle which lasted only four or five minutes. Inspector Cowley, mortally wounded, died early the next morning.

Nelson, also critically injured, was helped into Cowley's automobile by Chase. Many guns and other articles were transferred from Nelson's car to the agents' car. Helen Gillis had been lying in a field during the battle. She jumped into the government vehicle as Chase was driving it away.

"Baby Face" Nelson died about 8:00 that evening. In response to an anonymous telephone call, FBI Agents found his body the next day near a Niles Center, Illinois, cemetery.

Nelson's widow was arrested on November 29, 1934. Having violated the terms of her parole, Helen Gillis was sentenced to serve one year and one day in the Women's Federal Reformatory in Mila, Michigan.

After Chase disposed of Nelson's body, he returned to Chicago. On November 30, 1934, Chase responded to a want ad for men to drive automobiles to Seattle, Washington. To obtain this job, he was photographed for a chauffeur's license at a police station. Because Chase's only known arrest had been for drunkenness in 1931, no wanted circulars with his photograph and fingerprints had ever been issued.

In early December, 1934, Special Agents of the FBI's San Francisco Office contacted Chase's former employers and associates. They were instructed to notify the FBI if Chase was seen. On December 27, 1934, Chase tried to borrow money from employees at the Mount Shasta, California, fish hatcheries, where he had worked in 1928. The FBI and local police were immediately notified, and Chief of Police A. L. Roberts apprehended Chase.

On December 31, 1934, Chase was removed to Chicago, Illinois, where he was the first person to be tried under the law that made it a Federal violation to murder a Special Agent of the FBI in the performance of his duties. Chase's trial began on March 18, 1935. One week later, the jury found him guilty of murdering Inspector Samuel P. Cowley. The Attorney General designated the United States Penitentiary, Alcatraz Island, California, to receive Chase, and his imprisonment there began on March 31, 1935.

Chase was transferred to the United States Penitentiary, Leavenworth, Kansas, in September, 1954. Although he had been serving time for the murder of Inspector Cowley, 20 years later Chase had not yet been tried on the December 31, 1934, indictment charging him with Special Agent Hollis's murder. On April 27, 1955, a motion was filed in United States District Court, Chicago, Illinois, demanding immediate trial on this indictment or its dismissal.

On October 17, 1955, a United States District judge dismissed the indictment that charged Chase with Hollis's murder. He held that Chase's mere knowledge of the indictment and his failure to take action did not constitute a waiver of his right to a speedy trial.

When the pending indictment was dismissed, Chase became eligible for parole. After parole had been denied repeatedly, Chase finally was paroled from Leavenworth on October 31, 1966. After his release, Chase resided in California, where he was employed as a custodian for over six years.

John Paul Chase died of cancer in Palo Alto, California, on October 5, 1973.

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"Baby Face" Nelson was born Lester M. Gillis on December 6, 1908, in Chicago, Illinois. He roamed the Chicago streets with a gang of juvenile hoodlums during his early teens. By the age of 14, he was an accomplished car thief and had been dubbed "Baby Face" by members of his gang due to his juvenile appearance.

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Al Capone Convicted for Tax Evasion, 1931

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Al Capone Convicted for Tax Evasion, 1931

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"On October 18, 1931, Capone was convicted after trial, and on November 24, was sentenced to eleven years in Federal prison, fined $50,000 and charged $7,692 for court costs, in addition to $215,000 plus interest due on back taxes."

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In 1929, Prohibition Bureau agent Eliot Ness began a successful investigation of Capone and his business. Shutting down many breweries and speakeasies Capone owned, Ness brought down his empire slowly. To lie low, Capone arranged to have himself jailed in a comfortable cell at Philadelphia's Eastern State Penitentiary for nine months beginning August 1929.
Upon his return to Chicago, he quickly found himself in the legal quagmire that effectively removed him from power.

In 1931 Capone was indicted for income tax evasion and various violations of the Volstead Act. Facing overwhelming evidence, his attorneys made a plea deal, but the presiding judge warned he might not follow the sentencing recommendation from the prosecution, so Capone withdrew his plea of guilty. Attempting to bribe and intimidate the potential jurors, his plan was discovered by Ness' men. The jury pool was then switched with one from another case, and Capone was stymied. Following a long trial, he was found guilty on some income tax evasion counts (the Volstead Act violations were dropped). The judge gave him an eleven-year sentence along with heavy fines, and liens were filed against his various properties. His appeal was denied. In May 1932, Capone was sent to Atlanta U.S. Penitentiary, a tough federal prison, but he was able to obtain special privileges. He was then transferred to Alcatraz, where tight security and an uncompromising warden ensured that Capone had no contact with the outside world. His isolation from his associates and the repeal of Prohibition in January 1933, precipitously diminished his power.

Capone earned the contempt of many inmates when he refused to take part in a prisoners' strike after a sick inmate was denied medical treatment and died. Continuing his work in the prison laundry, Capone was continually harassed by other prisoners and often called a "scab" or "rat."

When Capone attempted to bribe guards he was sent to solitary confinement. Capone suffered further harassment and unsuccessful attempts on his life throughout his prison sentence, including spiking his coffee with lye and an attack as he was walking to the dentist's office.

Though he adjusted relatively well to his new environment, his health declined as the syphilis he caught as a youth progressed. Antibiotics to cure the disease had not yet been discovered. He spent the last year of his sentence in the prison hospital, confused and disoriented. Capone completed his term in Alcatraz on January 6, 1939, and was transferred to the Federal Correctional Institution at Terminal Island in California, to serve his one-year misdemeanor sentence. He was paroled on November 16, 1939, spent a short time in a hospital, then returned to his home in Palm Island, Florida.

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Al Capone Convicted of Federal Tax Evasion

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The U.S. Treasury Department had been developing evidence on tax evasion charges - in addition to Al Capone, his brother Ralph "Bottles" Capone, Jake "Greasy Thumb" Guzik, Frank Nitti and other mobsters were subjects of tax evasion charges. On June 16, 1931, Al Capone pled guilty to tax evasion and prohibition charges.

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Photos of Hoovervilles, children's protests, and a letter to President Roosevelt

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"Hooverville," Central Ohio, 1938
Farm Security Administration/Office of War Information Black-and-White Negatives

The Great Depression began in 1929 when, in a period of ten weeks, stocks on the New York Stock Exchange lost 50 percent of their value. As stocks continued to fall during the early 1930s, businesses failed, and unemployment rose dramatically. By 1932, one of every four workers was unemployed. Banks failed and life savings were lost, leaving many Americans destitute. With no job and no savings, thousands of Americans lost their homes. The poor congregated in cardboard shacks in so-called Hoovervilles on the edges of cities across the nation; hundreds of thousands of the unemployed roamed the country on foot and in boxcars in futile search of jobs. Although few starved, hunger and malnutrition affected many.

In a country with abundant resources, the largest force of skilled labor, and the most productive industry in the world, many found it hard to understand why the depression had occurred and why it could not be resolved. Moreover, it was difficult for many to understand why people should go hungry in a country possessing huge food surpluses. Blaming Wall Street speculators, bankers, and the Hoover administration, the rumblings of discontent grew mightily in the early 1930s. By 1932, hunger marches and small riots were common throughout the nation.

In June of 1932, nearly 20,000 World War I veterans from across the country marched on the United States Capitol to request early payment of cash bonuses for their military service that weren't due to be paid until 1945. The marchers, who the organizers called the "Bonus Expeditionary Force" but who became widely known as the Bonus Army, spent several days in Washington, D.C., pressing their case, but a Congressional bill to pay the bonus was defeated. On July 28, U.S. troops and tanks commanded by General Douglas MacArthur dispersed the marchers and destroyed their makeshift camps in the city.

However, not all citizens were caught up in the social eruptions. Many were too downtrodden or busy surviving day to day to get involved in public displays of discontent. Instead, they placed their hope and trust in the federal government, especially after the election of Franklin D. Roosevelt to the presidency in 1932.

To find more documents in Loc.gov related to this topic, use key words such as Great Depression, begging, unemployment, poverty, stock market crash, Bonus Army, and Hoovervilles.

Documents

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Americans React to the Great Depression | Great Depression and World War II, 1929-1945 | U.S. History Primary Source Timeline | Classroom Materials at the Library of Congress | Library of Congress

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The Great Depression began in 1929 when, in a period of ten weeks, stocks on the New York Stock Exchange lost 50 percent of their value.

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Fashion staples for work and leisure

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The Great Depression and World War II bookended the 1930s, but fashion flourished anyway during this decade. Glamorous Hollywood screen stars inspired new looks for women, men, and even children. Inexpensive fabrics, affordable catalog clothing, and homespun ingenuity let anyone copy styles previously worn by the wealthy. Here's a quick look at 1930s fashion.

1930s Fashion for Women

The young, boyish silhouette of 1920s women evolved into a conservative, sophisticated shape in the 1930s. The ideal, popular profile was tall and thin, with strong shoulders and slim hips.

Women's Dresses

At home or in public, women most commonly wore dresses with wide shoulders; puffy sleeves; modest necklines; higher, belted waistlines; and mid-calf flared hemlines. Frilly bows, ruffles, buttons, and other details often decorated dresses.

Housewives wore practical house dresses at home, often homemade from colorful printed cotton (including flour and feed sack fabric). A clever version was the " Hooverette" house dress, a reversible wrap style. Day dresses for wearing in public were more tailored and elegant, often made from silk or rayon crepe. Some women wore blouses with skirts.

Formal dresses most dramatically displayed the decade's willowy, elegant silhouette. Evening gowns in fluid fabrics were cut on the bias to create flowing, figure-hugging lines that reached the floor. Popular fabrics included satin, rayon, and chiffon.

Women's Trousers and Active Wear

Hollywood screen stars Katherine Hepburn and Marlene Dietrich helped introduce women's trousers for sports and leisure. These trousers were wide-legged and high-waisted, often styled like sailors' pants. Women wore baggier, casual lounge pants on vacation and at the beach. The modern swimsuit came of age during the 1930s, as lighter-weight, rubberized fabrics replaced heavier wool suits.

Women's Hairstyles and Accessories

In the 1930s, women copied the hairstyles and accessories they saw on popular, glamorous film stars. Short, curly styles dominated, such as the sleek Marcel wave (first popularized in the 1920s). Toward the end of the decade, the more classic 1940s medium-length "middy" style started coming into fashion.

Women often accessorized with inexpensive costume jewelry, gloves, silk scarves, and furs. Smaller hats were popular, such as berets, Greta Garbo-style slouch hats, or knit caps. Turbans topped fancier looks. Two-tone oxford shoes and strappy dress shoes with high, chunky heels were the shoes of choice. It was common to match accessories such as shoes, handbag, and hat.

1930s Fashion for Men

The male silhouette had wide, padded shoulders, a broad chest, defined waist, and straight legs. The overall trend was looser and a little more casual.

Men's Suits

Prince Edward, Duke of Windsor, was a famous 1930s fashion icon. He popularized the English drape suit, which became popular all over the world. In contrast to the rigid, militaristic cut of men's suits of his day, Edward wore jackets that were softer in the shoulder, with a vertical drape over a fuller chest. Other trendsetters included film stars Clark Gable and Gary Cooper.

Suits of the 1930s typically had high waists and slightly tapered, creased trousers with turned-up cuffs. Younger men preferred baggier trousers and longer jackets. Suits were darker blue, brown, or gray for cooler weather, with lighter tones for warm weather. Bold patterns included stripes, checks, and plaids.

A vest, pocket handkerchief, shorter tie, hat (such as a fedora or bowler), and dark or two-toned leather dress shoes completed the look.

Men's Work and Leisure Clothing

Daily wardrobes of laboring men paid little heed to fashion trends. They often wore bib overalls or coveralls of sturdy denim or duck cloth. Work shirts were loose-fitting and long-sleeved. Work uniforms often paired lighter-weight, colored shirts with matching trousers. Heavy leather work boots protected the feet.

Some men wore sports jackets for leisure; in the United States, men also wore them to work. Knitted sweaters, soft-collared shirts, and flannel trousers were also donned for sports and relaxation. Men typically wore one-piece wool swimsuits, but the 30s decade also saw the first men's swimming trunks.

What Did Children Wear in the 1930s?

Many children wore homemade clothing or items purchased from mail-order catalogs. During the Great Depression, mothers often remade children's clothing from other items, including flour and feed sacks. These items would have been unique and perhaps well-worn, but many were styled after prevailing trends.

The frilly dresses worn by young, popular film star Shirley Temple and Princesses Elizabeth and Margaret in the United Kingdom set the tone for girls' clothing. Embellished, puffy-sleeved dresses sported rounded Peter Pan collars. Hemlines were high for younger girls and dropped below the knee for older girls. Dark "Mary Jane" dress shoes topped ankle-high white socks.

Boys' trouser hemlines also dropped as they got older. Younger boys donned sailor suits or " buster suits," which paired shorts with long-sleeve, button-down shirts. Older boys wore trousers or flannel suits with button-down shirts and ties, sometimes with a knitted sweater or sweater vest.

Fashion in Your Family History

What did your relatives wear in the 1930s? Look for photos of them in the free, crowdsourced collections of FamilySearch Memories. Or upload your own family photos to share memories of your loved ones-and of what they wore.

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1930s Fashion: Women's, Men's, and Children's Clothing * * FamilySearch Blog

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The Great Depression and World War II bookended the 1930s, but fashion flourished anyway during this decade. Glamorous Hollywood screen stars inspired new looks for women, men, and even children. Inexpensive fabrics, affordable catalog clothing, and homespun ingenuity let anyone copy styles previously worn by the wealthy.

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Styles of Music Popular in the Thirties

Popular Musical Singers and Songwriters

Cole Porter, Irving Berlin, Jerome Kern, George Gershwin, Ira Gershwin, Richard Rodgers, Lorenz Hart, Oscar Hammerstein II, Fred Astaire, Ginger Rogers, Ethel Merman, Ethel Waters, Eddie Cantor, Shirley Temple, Dick Powell, Betty Grable, Joan Blondell, Irene Dunne, Johnny Mercer, Allen Jones, Mae West

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Bing Crosby, Rudy Vallee, Fred Astaire, Perry Como, Russ Columbo, Johnny Mercer, Nat King Cole, Frank Sinatra, Hoagy Carmichael, Eddie Cantor, Louis Jordan, Louis Prima, Mildred Bailey, Annette Hanshaw, Ethel Shutta

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Causes, effects, and mitigation measures

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During the 1930s, many measures were undertaken to relieve the direct impacts of droughts and to reduce the region's vulnerability to the dry conditions. Many of these measures were initiated by the federal government, a relatively new practice. Before the 1930s drought, federal aid had generally been withheld in emergency situations in favor of individual and self-reliant approaches. This began to change with the development of the Great Depression in the late 1920s and the 1933 inauguration of President Franklin Delano Roosevelt. The depression helped "soften deep-rooted, hard-line attitudes of free enterprise, individualism, and the passive role of the government", thus paving the way for Roosevelt's New Deal programs, which in turn provided a framework for drought relief programs for the Great Plains (Warrick, 1980).

Warrick et al. (1975) describe these drought relief programs, which are credited with saving many livelihoods throughout the drought periods. The programs had a variety of goals, all of which were aimed at the reduction of drought impacts and vulnerability:

Providing emergency supplies, cash, and livestock feed and transport to maintain the basic functioning of livelihoods and farms/ranches.

Establishing health care facilities and supplies to meet emergency medical needs.

Establishing government-based markets for farm goods, higher tariffs, and loan funds for farm market maintenance and business rehabilitation.

Providing the supplies, technology, and technical advice necessary to research, implement, and promote appropriate land management strategies.

Removing dead trees and planting new trees to alleviate psychological stress and create shelter belts.

President Roosevelt visiting a farmer who received a drought relief grant, Mandan, North Dakota, 1936. Photo by Arthur Rothstein.(Image: Library of Congress, Prints & Photographs Division, FSA-OWI Collection, LC-DIG-fsa8b28231 DLC)

As important as these programs may have been, the survival of a majority of the families and enterprises undoubtedly rested solely with their perseverance and integrity. Whether they stayed or moved into the drought regions or migrated to other areas in hopes of a better life, families encountered new hardships and obstacles that would require ingenuity, resilience, and humility.

Those who remained in the drought regions were forced to endure severe dust storms and their health effects, diminished incomes, animal infestations, and the physical and emotional stress over their uncertain futures. Humor helped; tales about birds flying backward to keep from getting sand in their eyes, housewives scouring pots and pans by holding them up to keyholes for a sandblasting, and children who had never seen rain were among the favorite stories of Dust Bowl inhabitants. In the end, it was a combination of willpower, stamina, humor, pride, and, above all, optimism that enabled many to survive the Dust Bowl. These qualities are succinctly expressed in the comments of one contemporary Kansan: "We have faith in the future. We are here to stay" (quoted in Hurt, 1981).

The 1930s drought and its associated impacts finally began to abate during spring 1938. By 1941, most areas of the country were receiving near-normal rainfalls. These rains, along with the outbreak of World War II, alleviated many of the domestic economic problems associated with the 1930s. In fact, the new production demands and positive climatic conditions brought the United States into a rapid economic boom.

Even though short-term conditions seemed to be relatively stable, this production growth had some drawbacks. One drawback (described by Hurt, 1981) was that the start of World War II shifted remaining funds and priorities away from drought-related programs. Men were taken off work programs to enter the armed forces and to produce for the war effort. Moreover, items such as gasoline and replacement parts were redirected from federal drought and conservation programs to the war efforts. This meant that conservation programs and research were significantly reduced during this period. Another drawback was that with the return of the rains, many people soon forgot about conservation programs and measures implemented during the 1930s droughts. This led to a return to some of the inappropriate farming and grazing practices that made many regions so vulnerable to drought in the 1930s.

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During the 1930s, many measures were undertaken to relieve the direct impacts of droughts and to reduce the region's vulnerability to the dry conditions. Many of these measures were initiated by the federal government, a relatively new practice. Before the 1930s drought, federal aid had generally been withheld in emergency situations in favor of individual and self-reliant approaches.

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The map is by David Burns.

Copyright 2009, 2016 by David Burns. All rights reserved. As a guide to the Virginia Standards of Learning, some pages necessarily include phrases or sentences from that document, which is available online from the Virginia Department of Education. The author's copyright extends to the original text and graphics, unique design and layout, and related material.

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Below: A map showing the "Dust Bowl" area that was affected by the drought (lack of rain) during the 1930s. Many thousands of farms in the area went bankrupt when they could not produce a crop to sell. The map is by David Burns. Copyright 2009, 2016 by David Burns.

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1. Bonnie died wearing a wedding ring-but it wasn't Clyde's.

Six days before turning 16, Bonnie married high school classmate Roy Thornton. The marriage disintegrated within months, and Bonnie never again saw her husband after he was imprisoned for robbery in 1929. Soon after, Bonnie met Clyde, and although the pair fell in love, she never divorced Thornton. On the day Bonnie and Clyde were killed in 1934, she was still wearing Thornton's wedding ring and had a tattoo on the inside of her right thigh with two interconnected hearts labeled "Bonnie" and "Roy."

2. Bonnie wrote poetry.

During her school days, Bonnie excelled at creative writing and penning verses. While she was imprisoned in 1932 after a failed hardware store burglary, she penned a collection of 10 odes that she entitled "Poetry from Life's Other Side," which included "The Story of Suicide Sal," a poem about an innocent country girl lured by her boyfriend into a life a crime. Two weeks before her death, Bonnie gave a prescient poem to her mother entitled "The Trail's End" that finished with the verse:

Some day they'll go down together;
And they'll bury them side by side,
To a few it'll be grief-
To the law a relief-
But it's death for Bonnie and Clyde.

3. The Navy rejected Clyde.

As a teenager, Clyde attempted to enlist in the U.S. Navy, but lingering effects from a serious boyhood illness, possibly malaria or yellow fever, resulted in his medical rejection. It was a hard blow for Clyde, who had already tattooed "USN" on his left arm.

4. Clyde's first arrest came from failing to return a rental car.

The notorious criminal was first arrested in 1926 for automobile theft after failing to return a car he had rented in Dallas to visit an estranged high school girlfriend. The rental car agency dropped the charges, but the incident remained on Clyde's arrest record. Just three weeks later, he was arrested again alongside his older brother Ivan "Buck" Barrow for an even more farcical crime-possession of a truckload of stolen turkeys.
READ MORE: Bonnie Wasn't Clyde's Only Female Accomplice
5. Bank robberies were not their specialties.

Although often depicted as Depression-era Robin Hoods who stole from rich and powerful financial institutions, Bonnie and Clyde staged far more robberies of mom-and-pop gas stations and grocery stores than bank heists. Oftentimes, their loot amounted to only $5 or $10.

6. Clyde chopped off two of his toes in prison.

While serving a 14-year sentence in Texas for robbery and automobile theft in January 1932, Clyde decided he could no longer endure the unforgiving work and brutal conditions at the notoriously tough Eastham Prison Farm. In the hopes of forcing a transfer to a less harsh facility, Clyde severed his left big toe and a portion of a second toe with an axe, although it is not known whether he or another prisoner wielded the sharp instrument. The self-mutilation, which permanently crippled his walking stride and prevented him from wearing shoes while driving, ultimately proved unnecessary as he was released on parole six days later.

7. Bonnie walked with a limp after a car accident.

On the night of June 10, 1933, Clyde, with Bonnie in the passenger seat, was speeding along the rural roads of north Texas so quickly that he missed a detour sign warning of a bridge under construction. The duo's Ford V-8 smashed through a barricade at 70 miles per hour and sailed through the air before landing in a dry riverbed. Scalding acid poured out of the smashed car battery and severely burned Bonnie's right leg, eating away at her flesh down to the bone in some places. As a result of the third-degree burns, Bonnie, like Clyde, walked with a pronounced limp for the rest of her life, and she had such difficulty walking that at times she hopped or needed Clyde to carry her.

8. Souvenir hunters tried to cut off parts of Bonnie and Clyde at the scene of their deaths.

On May 23, 1934, a six-man posse led by former Texas Ranger captain Frank Hamer ambushed Bonnie and Clyde and pumped more than 130 rounds of steel-jacketed bullets into their stolen Ford V-8 outside Sailes, Louisiana. After dozens of robberies and 13 murders in their name, Bonnie and Clyde's crime spree had finally come to an end. With acrid gunsmoke still lingering in the air, gawkers descended upon the ambush site and attempted to leave with macabre souvenirs from the bodies of the outlaws still slumped in the front seat. According to Jeff Guinn's book Go Down Together, one man tried to cut off Clyde's ear with a pocket knife and another attempted to sever his trigger finger before the lawmen intervened. One person in the throng however managed to clip locks of Bonnie's hair and swathes of her blood-soaked dress.
READ MORE: Bonnie and Clyde's Last Day Alive
9. Their bullet-riddled "death car" is on display at a casino.

Following the ambush of Bonnie and Clyde, a Louisiana sheriff who was a member of Hamer's six-man posse claimed the pockmarked Ford V-8 sedan, still coated with the outlaws' blood and tissue. A federal judge, however, ruled that the automobile stolen by Bonnie and Clyde should return to its former owner, Ruth Warren of Topeka, Kansas. Warren leased and eventually sold the car to Charles Stanley, an anti-crime lecturer who toured fairgrounds with the "death car" and the mothers of Bonnie and Clyde in tow as sideshow attractions. Still speckled with bullet holes, the "death car" is now an attraction in the lobby of Whiskey Pete's Casino in Primm, Nevada, a small resort town on the California border 40 miles south of Las Vegas.

10. Bonnie and Clyde were buried separately.

Although linked in life, Bonnie and Clyde were split in death. While the pair wished to be buried side-by-side, Bonnie's mother, who had disapproved of her relationship with Clyde, had her daughter buried in a separate Dallas cemetery. Clyde was buried next to his brother Marvin underneath a gravestone with his hand-picked epitaph: "Gone but not forgotten."

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10 Things You May Not Know About Bonnie and Clyde

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Six days before turning 16, Bonnie married high school classmate Roy Thornton. The marriage disintegrated within months, and Bonnie never again saw her husband after he was imprisoned for robbery in 1929. Soon after, Bonnie met Clyde, and although the pair fell in love, she never divorced Thornton.