Unemployment, Crisis, Early New Deal 2/1/06 1. Pre-Class Notes a. Kindleberger – pg. 11: Summary of the book (underwriter theory) 2. Unemployment a. Concept of Employed vs. Unemployed i. “The Forgotten Man” – the unemployed person – the symbol of the Great Depression ii. Jobs establish a person’s identity unemployment creates anonymity b. Depth i. More than half experienced direct economic consequences ii. The fortunate worked for fewer hours at lower wages cut backs on luxury goods iii. Unemployed -- eat little and poorly, stop using electricity, eliminating non-necessities, borrowing, wandering 1. Rise of the hobo 2. Extreme deprivation – a. New Orleans people searched in garbage cans, disease was rampant, malnutrition, poor housing, lack of clothing b. Farm income drops a lot (70%), farm families had shelter and food, inability to buy new equipment and repairs, farmers default on mortgages, high rate of failures on rural banks 3. Consequences a. Great psychological consequences
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