The Great Depression In The 1920's
What it is- The Great Depression was a worldwide economic downturn that began in the fall of 1929 and did not end in many places until the Second World War. It was triggered in large part by a sudden crash of the American stock market on October 29, a day widely known as Black Tuesday. In Newfoundland and Labrador, a number of factors contributed to the country’s financial troubles (Started in the 1920’s).
The 1920s- Throughout the 1920’s, new industries and new methods of production led to great opulence in the U.S.. America was able to use its great supply of raw materials to produce steel, chemicals, glass, and machinery that became the foundation of an enormous escalation in consumer products. Many US citizens invested on the stock market, …show more content…
Not many US citizens were even participating in the advancement from the start. There were some wealthy individuals, but 60% of the population was living in poverty. The coal mining industry had expanded enormously, creating plenty of jobs, but with the introduction of oil and gas, the production of coal was decreased along with the many of the jobs. The United Mine Worker Union’s membership fell from 500,000 in 1920 to 75,000 in 1928. The cotton industry experienced similar unemployment issues. In the agricultural industry, an increase in production was met with a decrease in demand (Production companies produced a load of product that nobody could afford, and by the time they slowed production, they didn't have enough money to function so they let people go), so farmers also had less jobs …show more content…
In 1920, the Reid Newfoundland Company realized that it could no longer afford to operate its costly railway and approached the government for help. That year alone, the railway had accumulated a deficit of $1.7 million. The government passed the Railway Settlement Act in 1923 and assumed control of the operation. The service, however, continued to lose money throughout the 1920s and 1930s, with annual deficits amounting to as much as $3 million. By the time the Great Depression broke out in 1929, government spending on the railway and First World War accounted for approximately two thirds of Newfoundland and Labrador’s $80-million national
The 1920s- Throughout the 1920’s, new industries and new methods of production led to great opulence in the U.S.. America was able to use its great supply of raw materials to produce steel, chemicals, glass, and machinery that became the foundation of an enormous escalation in consumer products. Many US citizens invested on the stock market, …show more content…
Not many US citizens were even participating in the advancement from the start. There were some wealthy individuals, but 60% of the population was living in poverty. The coal mining industry had expanded enormously, creating plenty of jobs, but with the introduction of oil and gas, the production of coal was decreased along with the many of the jobs. The United Mine Worker Union’s membership fell from 500,000 in 1920 to 75,000 in 1928. The cotton industry experienced similar unemployment issues. In the agricultural industry, an increase in production was met with a decrease in demand (Production companies produced a load of product that nobody could afford, and by the time they slowed production, they didn't have enough money to function so they let people go), so farmers also had less jobs …show more content…
In 1920, the Reid Newfoundland Company realized that it could no longer afford to operate its costly railway and approached the government for help. That year alone, the railway had accumulated a deficit of $1.7 million. The government passed the Railway Settlement Act in 1923 and assumed control of the operation. The service, however, continued to lose money throughout the 1920s and 1930s, with annual deficits amounting to as much as $3 million. By the time the Great Depression broke out in 1929, government spending on the railway and First World War accounted for approximately two thirds of Newfoundland and Labrador’s $80-million national