Facts About Effects Of The Great Depression
Here are some interesting facts about the effects of the Great Depression.
•Because of the Great Depression, more than 9,000 banks closed during the 1930s, causing millions of people to lose their life savings.
•From 1929 to 1933, the U.S. Gross National Product (which is a measurement of how many goods and services are produced in a year) dropped by 33%.
•At the start of the Great Depression, there were no federal welfare or social programs in place. Out of the Great Depression and FDR’s New Deal, these programs were created: Civilian Conservation Corps (CCC); Federal Housing Administration (FHA); Public Works Administration (PWA); Social Security Act (SSA).
•One of the effects of the Great Depression is that the tax rate changed significantly for the wealthiest Americans. In 1927, the top tax rate was reduced to 25%, which is a large part of what caused the Great Depression. In 1932, in an effort to pull out of the Great Depression, the rate was raised to 63%. In 1936, it was bumped again, to 79%. In 1945, it reached an incredible 91% and hovered at 88% or greater until 1963 when it was reduced to 70%. In comparison, today’s top tax rate is 35%.
•The FDIC was created to insure that people’s money would be safe and protected against bank failures.
•Changes were made to the stock market to prevent rampant speculation and further crashes, the most notable of which was that people could no longer buy stocks on margin.