-unemployment experiences also differed widely by occupational group, industry and
-unemployment rate followed a U-shaped pattern with respect to age; young and old had
much higher incidences of unemployment than the middle-aged
- In 1919 55% of the power in manufacturing was supplied by electricity and by 1929
electricity supplied 82% of the power.
-This statistic obscures the dramatic increase in electric power use in small work
shops and among other small power users as a resu
couldnt fit northern technology into southern resource basediscouraged capital
low level of spending on public schooling in south
edu increases earnings potential and opportunity set
whites had little incentives to educate blacks
segmentation in S
LF participation for slaves was close to 100% once emancipated-similar to
whites excepted married black women were more likely to work than
Women lower LFP than men, left LF when marriedchanged overtime
Workers spend fewer y
In 1921 there were 40 investment funds and by 1929 there were more than 750
Increased buying on low margins was main culprit
In unregulated market, people with low credit could buy with less than 10% down
Growing demans for credit to buy stocks pulled ne
marked the start of the federal governments assumption of responsibility for promoting
and maintaining economic stability, both domestically and internationally.
-The Federal Reserve Act of 1913 had given the Fed the power to set reserve ratios and
awaited acceptance of the Dawes Plan negotiated by the US.
-This plan reduced the reparation payments, linking them to
Germanys recovery and capacity to pay, and provided $800 million as the reserves
backing the newly convertible reichsmark.
-In effect th
New estimates-rates of labor productivity were 3-4 times higher
after warmore consistent with data on wage rates
Two labor markets:
Higher wages (80-90% higher than long term workers)
Avg 5 months
Higher relative wages drew many young single women
Parental fears about unmarried daughter working:
Wages paid directly to farmer/father or system of remittances
required to live in supervised dormitories
long hours, six days a week,
no free time
quickly as wartime contract and controls were ended abruptly.
-Discharges from the armed forces also began almost immediately.
-In December 1918 600,000 men who had not yet embarked for Europe
were discharged. By the following April almost two million had