• We have updated our Community Code of Conduct. Please read through the new rules for the forum that are an integral part of Paradox Interactive’s User Agreement.

unmerged(17709)

First Lieutenant
Jun 19, 2003
245
0
Visit site
Rise of a Free Nation, Rise of the Sleeping Giant: A History of the United States

intro.jpg

"We look forward to a world founded upon four essential human freedoms. The first is freedom of speech and expression - everywhere in the world. The second is freedom of every person to worship God in his own way - everywhere in the world. The third is freedom from want - everywhere in the world. The fourth is freedom from fear - everywhere in the world."

- President Franklin D. Roosevelt, Message to Congress, January 6th 1941

Coming Soon
 
The Great Stock Market Crash: How and Why

The Great Stock Market Crash: The Days and Years Before

The United States economy had, since it’s inception in the 18th century, been relatively free of governmental control and interference. The ideals on which the free capitalist market was founded were intended to be just that - free. For some 100 years, the government kept it’s hands largely out of the economy letting it ride the ebb and flow, an inherent cycle of a free market economy. The government bore witness to numerous falls in market prices, and illustrated restraint even in times of depression. The government as a whole, from the White House to the Congress, sat on their hands, as was intended, as they had to watch many Americans fall into poverty from time to time. Yet, time and again the economy bounced back, and Americans who had to bear the hardships of a free market economy would then relish it’s wealth. This was the acceptable manner in which capitalism functioned in America. But that notion slowly began to change over time.

Up until 1867, the government failed to keep detailed economic records, and so it was difficult for lawmakers to understand fully the cycle that the economy followed. They knew that there were good times and bad times, and regardless of the situation the nation’s economy would emerge stronger and more prosperous over time. They dared not meddle where they weren’t supposed to. All that began to change following what is known as America’s first actual depression from 1873 to 1879. With numbers and figures to bally about, the government took a keener interest in the economy, and believed in the notion that they could change the market. Several minor laws were passed in Congress as they followed their good intentions of tweaking the economy without subverting it. The prospect of interferring where they predecessors had not was still strong enough to paint there determination with apprehension.

It wasn’t until America’s second recorded depression, 1893 to 1897, that the legislative and executive branches of the government that the apprehension and fear of changing what was accepted as protocol melted from their mindset. Washington was swamped with facts, figures, and data on the economy. More then any one man could comprehend. A Congressman would throw out such and such figure, put himself on a pedestal numbers in hand, and scream from the pulpit that it was high time for the government to remedy the economy. Everyone else on Capitol Hill were eager to listen, and they did more then listen. A flurry of laws and regulations on the economy were passed from 1897 through 1907 including Hepburn Act which extended the jurisdiction of the federal government over interstate commerce, vastly increasing the Interstate Commerce Commision’s(created by the Interstate Commerce Law passed in 1887)power.

As the years passed, government officials seemed to be vindicated by the strength of the economy as the nation passed into the waning years of the first decade of the twentieth century. Every law they had passed, every regulatory commision they had founded seemed to be paying dividends, and they were now convinced that for the economy to be at it’s best, it predicated government assistance. When the countries third depression and fourth depression struck in 1907 and 1920, that ideal was hardly shattered. The government went back to work on the economy attempting to get it back on it’s feet. With each depression lasting only two years each, lawmakers were now absolutely convinced that action was the best medicine. The concept of a hands off free market economy was officially dead in the water.

In 1913, the government waved it’s magic wand to create the most grandiose regulatory establishment to date - the Federal Reserve Board. Choosing to do away with the more limited Interstate Commerce Commision, they instead opted for the FRB as it afforded the federal government a considerably larger and far reaching grasp on the workings of the economy. The Federal Reserve Board was created as a last resort in order to prevent bank panics like the one that had occurred in 1907. There was little to no resistance on it’s creation as banks themselves preferred the protection offered by the federal government even at the cost of a little more government regulation. For the industry, it was an equitable trade-off. The public remained silent on the issue, convinced that because the FRB would consist of industry experts it was less a government agency then an industry watch dog.

It was an ingenious and profitable action. Over the next many years, money supply actually increased by 60%, mainly because the Federal Reserve was setting below market interest rates and low reserve requirements for the big banks. The stock market continued on a steady rise, minus the short lived dropoffs of the third and fourth depressions, and Americans began to take advantage of the bull market, coining the phrase “buying on margin” to exemplify their race for wealth.



The Great Stock Market Crash: “Black Thursday”

The good times rolled for American industry and even the average citizen for years and years until, in early 1929, America as a whole had obstenibly overextended itself. Acutely sensitive to this fact, the Federal Reserve realized that it could not sustain it’s policy of undercutting interest rates, and so they slowly began to raise rates with the intention of heading off a market crash. Even as the Fed raced to repair the long term damage they had caused by their estimation, the economy was reaching a high point in 1929. In August, the expansion of the economy had peaked. On September 3rd, stock market prices reached an all time high. Yet, despite the record setting year, what the Federal Reserve could not foresee at the time was that by raising interest rates they were to cause the entire house of cards to come crashing down.

America as a whole clung to the naive notion that the stock market could go nowhere but upwards. We simply could not be phased by anything - not the Florida real estate bubble bursting in the mid-20’s nor the numerous viotale days on the market in September of ‘29 could afflict even the slighest hint that things were about to suddenly, and tragically change for America.

The day was October 24th, 1929. As the market opened that Thursday morning, trading began in earnest as share volumes became more then the floor could handle. Some 12.9 million shares changed hands that day when a busy day then was considered 4 million. The ticker tape machine, which kept investors up-to-date on floor prices, fell an hour and a half behind which sent traders frantically selling off their stocks without knowing the prices. Panic began to grip the floor of the New York Stock Exchange. Crowds gathered outside the exchange and surrounding brokerages as word spread of the chaos ensueing inside. Just past noon, the Chicago and Buffalo Stock Exhchanges closed down in light of the confusion at the NYSE. Word that eleven industry speculators had already committed suicide only fueled the panic. Exchange officials were forced to close down the visitor’s gallery as they manically attempted to get a handle on a situation spiralling out of control.

nysecrowd.jpg
Brokerage employees and the general public crowd outside the New York Stock Exhange on "Black Thursday".

Attempting to stem the tide of the collapse, a group of prominent banking officials called an emergency meeting. Gathered at the offices of J.P. Morgan and Company, the officials filled in earnestly followed by a stream of reporters. For nearly an hour the officials held a closed door meeting, and afterwards Thomas Lamont, a senior partner at J.P. Morgan, issued a reassuring statement to the press saying, “There has been a little distress selling on the Stock Exchange due to a technical condition on the market” but that things were “susceptible to betterment.” The officials had unanimously concluded that there was little they could do at the time in terms of tangible action, and that for the time being reassuruance was what investors needed to here.

lamontspeaking.jpg
J.P. Morgan partner, Thoman Lamont, reassuring investors in hopes of spurring the market.

Lamont’s statement pushed the market up slightly based on his vote of confidence that the market could recover. Yet the state of the exchange was still in disarray. Needing a major vote of confidence, NYSE vice president and J.P. Morgan floor broker, Richard Whitney decided something more was needed - something bold and over-the-top was needed as a catalyst if the market was to regain it’s legs. Whitney personally stepped onto the exhchange floor, taking everyone by surprise and met with a chorus of cheers. Whitney, showing little fanfare or flare, studiously asked for the latest price on U.S. Steel. A trader from the floor yelled out “195” to which Whitney promptly announced that he was buying 10,000 shares at 205. The floor erupted in a wave of wild, exhuburant hoots and hollers. Whitney continued to place orders for more stocks, twelve more in fact.

Fearing they would loose out on the upswing, investors began to rapidly gobble up stocks as the market began to recover. After a record breaking drop, the fallout vanished at 1:30, the time Whitney had stepped onto the exchange floor. His theatrics quite literally saved the day, and had it not been for a flood of stop loss orders placed earlier in the day, the market’s recovery would have been even better. The recovery had been, to say the least impressive, but so had the drop-off prior to it. As the day ended, traders and market analysists speculated as to how the market would fare come Friday.

The American news media played up the events that took place on the 24th, concentrating more on the immense collapse rather then the miraculous come back. This inevitably shattered the investing public’s confidence in the stability of the market, henceforth creating a situation that was nearly impossible to escape from. For America, the 24th became forever known as “Black Thursday”, the crumbling of the American economy which propelled much of the population into poverty. This was more for the fact that it was the first tangible sign of despair for most Americans, and not a true reflection of events. “Black Thursday” was, in hindsight, tame compared to what was to befall the market in the days to come.


The Great Stock Market Crash: The Darkest Days Of All

The United States had yet to feel the impact of a crashing stock market following “Black Thursday”. For all it’s pomp and publicity, “Black Thursday” was more white then black as the coming days would prove. Friday, the 25th, the market throughout the day made a slight comeback, while on Saturday it slipped slightly. Up a little, down a little. Hardly a reason for concern for most market experts as it appeared as if stability had returned. The flux of the market had been experienced by many before, and had always recovered to a degree, so there was little room for concern.

This was the mindset of the entire industry from the lowly floor trader to the ever powerful brokerage firm presidents. The market had turned people into utter fools, and possibly the biggest fool of all was Professor Irving Fisher. He was a well respected and trusted economist who held the highest credentials along with a Yale University tenure. His word was gold amoung those in the industry, and when he spoke people paid special attention. On the 21st, Professor Fisher stated that the market was “shaking out of the lunatic fringe” and explained why he felt prices had not caught up with their actual value. On the 23rd, attending a banker’s meeting, he announced that “security values in most instances were not inflated”, and that “the nation is marching along a permanently high platuea of prosperity.” These words, from a man considered to be an investor prophet, proved ironically prophetic in the week to come.

Professor Irving had essentially convinced the majority of investors that the market could not fail, irregardless of what bumps in the road might occur. The arrogance of the lawmakers in Washington had spilled over into the private sector. Government protectionism of the economy had lead to a false sense of security that nothing could phase the market, and if problems transpired, the government would most assuredly prevent disaster. That belief carried through “Black Thursday”, but was finally crushed on “Black Monday”.

As the sun arose on the 29th of October, traders filed into the New York Stock Exchange bouyed by the relative stability of the past three days and the averted doom of “Black Thursday”. Few had any inkling of the turn for the worse the market was to take that day. Many even convinced the market was going to hit an upswing. Stocks immediately began to fly across the exhange floor as volume was heavy, ending at 9.25 million shares. Just as had happened five days earlier, the ticker tape fell behind again causing investors to sell blindly. For the first half of the trading day, it appeared to be a repeat of Thursday.

Except this time there was no heroic theatrics on the part of Richard Whitney to rescue the day, nor was there any high level emergency banker meetings to produce reassuring words from the lips of Thomas Lamont, who wouldn’t comment until after the market had closed - and even then his words were hardly optimistic. The latter half of the day continued on a freefall, and when the market closed it was the worst day in the history of the NYSE. The market had lost 13% of it’s value in just one day. Many wondered how it could possibly get any worse, and prayed for a recovery the following day. But despite the strength of their ignorant notions, “Black Monday” was but a precursor for “Black Tuesday”.

To understand “Black Tueday” in simple terms, combine the worst features of “Black Thursday” with the worst features of “Black Monday”. On Thursday, the NYSE set a record with a 12.9 volume, but that record was short lived. On Tuesday, 16.4 million shares were traded. On Thursday, the ticker tape fell behind a hour and a half. On Tuesday, it fell behind two and a half hours. Traders, who sold shares blindly on Thursday and Monday, were selling shares without any conception of value what-so-ever on Tuesday.

ticker.jpg
With the ticker more then two hours behind, traders examine stock prices in a futile attempt to get a selling price for their orders.

Like on previous “Black Days”, top banking officials held an emergency meeting. This day they called two, one in the afternoon during mid-trade and one after the market closed. Once again, Thomas Lamont stepped up to the throng of reporters. Expecting words of encouragement, all the world heard was marginal business talk. Failing to hear confidences at a time when it was needed most, rumors began to be ballied about that the bankers were selling off stock rather then attempting to stabilize the market. When the market closed that day, the market had lost another 12% of it’s value.

The 29th and 30th of October were the two worst days in the market’s history as it lost 25% of it’s value in just a short twenty-four hour period. It was the likes of which no one had ever seen, and what was previously digested as a mantrum that the market was impentrable, dissolved in a blinding flash. Investor confidence turned into investor fear, and the market continued it’s slide. By the end of November, investors had lost nearly $100 billion in assets. In just two months, September and October, the stock market had lost 40% of it’s value.
 
Last edited:
God bless America :cool: Can't wait to see how this turns out, I love it so far.
 
Ummm, Wow, I like your approch, Histical, , I haven't read one of USA, So far it sound good, I wonder what things you will make USA do,
Looks GOOD

:rofl: :rofl: :rofl: Roll on with the story (one more smile) :rofl: :rofl: :rofl: (what matians are bad at counting,)
 
The Great Depression: Bad Business

The Great Depression: A Vicious Business Cycle

Through 1928 and 1929, as the Federal Reserve Board raised interest rates in order to discourage stock speculation they were invariably laying the framework for the crash of the stock market in late 1929. Out of that destruction, they had invariably created a brutaly vicious business cycle that was to plague America for years and years to come. For over a decade, the FRB shared American investors optimism that with the rise of technological success, it assured a rapid rise in living standards and market strength. It wasn’t until 1928, that the FRB began to understand that market values were in fact a fallacy of that optimism, and there undercutting of interest rates was fueling those values. Their actions to save the market were in fact what lead to the worst catastrophy in American business history.

g7product.jpg

Trapped in their unlettered enthusiasm in market strength, American businesses were altogether caught by surprise when the market crashed in ‘29. Panic spilled over to every business owner in America. Uncertain over where the market was heading, they sought to stem the tide and save their business from collapse by cutting back purchases on durable goods. This in turn afflicted the producers of those goods, who naturally were forced to cut back their production. Consumers, those both out-of-work and fearing unemployment, cut back on purchases of durables creating scarce demand for products at all.

Prices fell in line with falling consumer demand, but the effects of deflation were not felt in full force until producers began to reduce their production levels even more so then demand predicated. The reasoning behind that decision was that with prices falling 10% a year, investors and business owners calculated that it would be fiscally profitable to delay investment for a year when the dollar had stretched even further in value. With investments nearly non-existent in the business world, there was nothing to support the foundation of prices, and they precipitously hit rock bottom. As deflation had ruined the value of the dollar, a banking panic ensued invariably instituting a preception in America that cast doubt on business credit.

United States Business Cycle 1890-1940​

businesscycle.jpg

American business reaction began cautiously at first as it looked to salvage itself from potential ruin. Unfortunately, it only added to the impending fall in prices which created an untenable cycle for American businesses and workers they could not escape from. At it’s height, the Great Depression was collective insanity. Workers found themselves unemployed because firms would not hire them to work their equipment; firms refused to hire unemployed workers to work their equipment because they saw a non-existent demand for marketable goods; and there was a non-existent demand for goods because unemployed workers had no income to spend. It was truly a vicious business cycle that, for years and years, was inescapable.


The Great Depression: Finding Comfort In The Past

As the Great Depression began to grip America by the jugular, the first instinct by both the government and industry experts was to revert back to the philosophy that had guided them for so long - to do nothing. For over a century, it had been standard practice for lawmakers and investors to take a “hands off” approach, and to let the free market economy play out. That philosophy had taken the country through steady, if not slow prosperity, but it possessed one essential feature the “hand ons” approach lacked - preventing a major econonomic crisis.

Although the events of the “Great Stock Market Crash” precipitated a turn around in how the government and investors viewed their role in molding the economy, it was also greatly influenced by the recent memory of the two depression previous in 1907 and 1920 that lasted two years each. It was thought that this depression would correct itself in due course, just as had happened beforehand. Earlier recessions had ended when the gap between actual and trend production had leveled out, and it was widely thought that the same would bring America out of the current depression. Workers sitting idle without work and capitalists with there machines sitting idle would attempt to undersell their still “at-work” peers, and as product prices fell to an acceptable level for entrepeneurs, they would then gamble that even the slack demand production would become profitable at the new, lower wages. Thus, production would resume in full swing. This was the general expectation of the business community.

Those expectations might have been met had it not been for the continued, albiet limited, actions of the Federal Reserve Board. With work production down 40% from the level attained in 1929, and with unemployment rising to nearly a quarter of the population, the federal government engaged itself in a scaled back attempt to rescue the economy. Rather then prop up aggregate demand utilizing open market operations, the FRB went in a completely opposite direction - raising interest rates and discouraging the outflow of gold. The mindset of the FRB at the time was that the private sector was best left to handle the situation and correct the market, proclaiming that it was the private sector’s task to “liquidate” the American economy, as it was mindfully fearful that the expansionary monetary policies, which had initially given birth to the economic woes of the country, would only impede the progress of the private sector.

contraction.jpg

It was a startling reversal of mindset for the federal government, who not more then three and four years earlier had touted the benefits of federal regulation of the economy as the best method for economic growth. The “Great Market Crash” had thrown the entire country into a cocoon of sorts in which they openly doubted everything they had accomplished to date in respect to economic practices. The government had gone from self-assurance in their policies to doubting that any policy was worth following.

President Herbert Hoover administration throughout the Great Depression was the epitomy of this fear ridden philosophy. Lead by Secretary of the Treasury Mellon, the federal government made it policy to remain outside the box as the economy tumbled. There were no efforts on the part of the White House to curb unemployment, deflation, or the production gap. For many members of the Hoover administration, they found it to be a political safe zone where, by letting the market self-correct, they would avoid any and all potential blame if the economy continued to fall. By leaving it up to the private sector to solve what was termed “their problem”, the administration skirted responsibility.

For a short period of time, they managed to maintain a level of acceptable popularity considering the condition of the nation. But that comfort zone was short lived, as it eventually had the effect of ruining Hoover’s political career as the economy, year after year, shrank. Many years later, Hoover would bitterly write in his memoirs about his administration that advised him to do nothing:

The ‘leave-it-alone liquadationists’ headed by Secretary Mellon felt that government must keeps it’s hands off and let the slump liquidate itself. Mr. Mellon had only one formula: ‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate’. He held that even panic was not altogether a bad thing. He said, ‘It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.’

Yet, even Hoover was one of the biggest backers of ‘liquidation’ during the Great Depression. In speeches, radio addresses, and policy memorandums, Hoover consistently showed his unwillingness to use policy to prop up the economy. He was met with a chorus of agreement from inside his administration and outside amoung the most eminent economists of the time. It would be a simple task to squarely place the blame upon the government’s policymakers for not rescueing the economy, but that would be too simple a blame.

America, in terms of how it viewed the interplay between the economy and government, was trapped in a state of shock, surprise, and confusion. Where confidence had once been thriving, doubt now took it’s place. Where expectations of growth once blossomed, one would only find the seeds of gloom. America, in a few short years, had been completely turned upside down as the Great Depression grabbed American by the bootstraps, spun her feet to the sky, and shook her with an unforgiving violence. The country had once been filled with a brimming optimism that was almost palpable in the air prior to 1929. But as the Great Depression tightened it’s grip on American society, she became polluted by a seering pessimism that was inescapable.

In retrospect, there is no one single person or entity to blame for the onset and continuation of the Great Depression. As much as the Federal Reserve Board can be blamed for setting the stage for it’s birth, the Hoover administration can carry blame as well for their inaction to reverse trends. As the Harvard economist Joseph Schumpter put it, “Policy does not allow a choice between depression and no depression, but between a depression now and a worse depression later.” Unfortunately, America as a whole choose the later option, and would suffer the consequences for years to come.
 
Last edited:
hey this is intresting, Are you going to put any dialoct in it, Maybye you should also put some action in it to. I like it How this is really close to History of USA
 
COEBAOTAUTROTFU said:
hey this is intresting, Are you going to put any dialoct in it, Maybye you should also put some action in it to. I like it How this is really close to History of USA

Expect this AAR to be an extremely historically(even ashistorical down the road)detailed one, so it's going to start slowly. There'll be action once I finish setting the stage of how and why America reaches the state it is come gametime. And once things get moving along, I'll inject backdoor political dialogue to the AAR. I just hope it's not too slow at the moment that it turns people off from reading
 
A very informative update. ;)
 
The Great Depression: Life In America

The Great Depression: Rural Life In America

Rural life in America had been the lifeblood of the nation since it’s foundation in 1776. The agriculture business in the early years of America’s short history as a nation, was the staple by which American’s made a living. America’s prosperity rested with the prosperity of it’s farmers. Through the 18th and 19th centuries, every man, woman, and child in one form or another had a direct connection to the farm, and depended on it’s success for their living standards.

As the twentieth century dawned, the agriculture industry slowly began to become a marginal factor in the American way of life with the Industrial Revolution. Economic centers were now the massive factory centers located in high density population areas. Cultural influences were taken ahold of by the appeal of the urban entertainment industry. Social standards shifted from the tight-knit communities to cities teeming with bodies. America underwent a largely disportionate shift in it’s demographics through the early twenthieth century, leaving rural existence a silent partner in America’s prosperity.

That preference for urban life and the abandonment of the rural community swapped positions following the crash of the stock market in the early 1930’s. The reason for the sudden reversal of population migration is complex, but can be best understood by understanding the basic nature of agriculture in any economy. To put it in it’s most base form, agriculture is a self-sustaining and insulated industry. Where as other industries are dependent upon the level of demand of the consumer to dictate the level of production, agriculture is not. Regardless of the state of any economy, the populace is requires nurishment, and hence the demand for food never plummets. The ability of the consumer to comsume mass quantities may drop, but it the first product the consumer will purchase. For the farmer, even throughout the Great Depression, there was a sustainable level of demand for his product. That was one of two reasons for the attraction of farming during such hard times. The other was the fact that life on a farm was essentially self-sufficient. The essence of farming has always been to live off the land, to harness the power of the land to sustain a certain level of living. The forest provided the material necessary for shelter. The land and their industry provided the food the needed to live. Everything else they had already learned, because of the remoteness of their location, to provide for themselves.

Jon Acorn, who lived with his family on a farm during the Great Depression, witnessed the migration and understood the reason’s behind it from experience:

Although life was difficult in the rural coutry, life in the cities was even harsher. I had a friend who was a banker, and when the stock crash happened, he and his family were left with nothing. Fortunately, he had a summer cottage in Plympton, and he and his family were able to support themselves on the small farm they owned. This seemed to be a trend - many families from the cities began to move out into the country where they could self-support themselves by growing their own victory gardens.

farmsale.jpg
For those unable to cope with the tough economic times, found their farms foreclosed on by the banks.

That is not to say that rural life during the Great Depression did not endure hardships like the rest of Americans. There were still some aspects of the famer’s life that were dependent upon other industries. Clothing was still purchased in the nearest towns, and with no money to spare, rural families were forced to make due like taking the bags from purchased grain and using the material to make clothing. Farming equipment had to be purchased from vendors, and a simple breakdown in one piece of equipment could send an entire family into poverty. Without the tools to cultivate the land, the farmer became fiscally sterile.

The hardest hit area of rural America were local government services. Already existing on a strict budget prior to 1929, the years that followed saw an abrupt free fall of incoming taxes. Numerous rural families choose to neglect tax payments, preferring to defer to the demands of their family rather then the tax laws of the local government body. The relationship between the government and the community in rural parts of the country lacked a sense of symbiotic reciprocaion. The people viewed their local government as a luxury, and the local government viewed it’s taxpayers as generous. This free wheeling, friendly, and casual existence would soon be forced to change to meet the hardships faced in the early 1930’s.

Faced with budget shortfalls, rural communities saw the local services they had come to take for granted collapse. The education system could no longer afford to pay their teachers, and schools began to close down. For many areas, the closing of a school meant the death of their children’s education as the next closest school was often too far to travel to. Rural counties had to scale back their medical services and, in extreme cases, were forced to close hospitals. With poor sanitation and the lack of electricity common in many rural areas, disease was a constant enemy to be battled which became a losing one for many families. The Red Cross was a life line for the most remote families and the poorest of poor living in rural America, but as donations dropped sharply in the early 30’s, these people were abandoned to their own destruction.

ruralchild.jpg
Rural children during the 'Great Depression' suffered through disease, hunger, and the loss of an education.​

The relationship rural communities had always enjoyed with their local governments quickly began to change as the Great Depression’s effects spread to the outskirts of American life. What was once a generally relaxed connection fermented into a hostile one as local governments took drastic steps to collect taxes. Ordered by county courts, local collectors began to seize the property of those individuals who did not pay their taxes. Although it was necessary to fund government services, it threw already struggling families into abject poverty. The passive relationship between rural government and community became one of resentment and anger often spilling over into hostile incidents between officials and the citizenry.

Throughout 1929 and even in the early part of 1930, the rural communties dotting America’s landscape had remained insulated from the stock market crash and it’s economic woes. The Great Stock Market Crash and the Great Depression were an urban problem, and there were more pressing concerns for rural residents worry themselves with. While urbanites dealt with their worthless stacks of paper stock, the rural populace worried about death tolls on local roads, the state shucking contest, the arrest of local boys for assaulting a local girl, and the showing of movies in church after services. What would be seen as petty, trivial problems through the eyes of urbanites were still the main concerns of those living in rural America.

Eventually, rural America would feel the wrath of the Great Depression, albiet in a far reduced form then their fellow Americans in the city. When they did, it turned a hard life even harder. The struggle turned into a fight for life, but rural communities managed far better then anyone else during the early 1930’s. Yet, the most important aspect of change wasn’t the economic troubles brought on by the Great Depression. It was the mindset of the rural man towards government. As he watched what limited services had been provided by the government to him either shrink or vanish, the distant respect he had for government turned to anger. And as he watched his property seized for the benefit of the government, that anger turned to unbridled hatred.

The most important effects of the Great Depression on rural life in America was not necessarily the economic problems produced, but the psychological alteration in mindset of the farmer towards his government. For the farmer, the government had simply been ‘there’. A shared respect for the government’s presence existed, but it was of a distant tone. The government didn’t intrude upon the daily lifes of the rural family, nor adversely influence it’s well-being. As that changed in the early years of the Great Depression, so did the farmer’s interest in politics. That interest although not voluntary, but it would prove critical to the state of politics in the years to come.


The Great Depression: Urban Life In American

The Roaring 20’s was a golden age for American culture, and it was the metropolitan centers of America that reaped the benefits. With the stock market continually on a broad ascension, urbanites were free to bask in the excesses of wealth and luxury. Whatever vice city dwellers preferred, they were able to afford the cost of indulgence. Social standing and interaction became a paramount concern to the affluent urbanite as technology had washed away what would have otherwise burdened them.

Where as the farmer worked for everything around him, the city dweller often expected certain things to be available for his consumption. Under all the layers of differences between rural and urban life prior to the Great Depression, the most base difference was that while the farmer learned to appreciate his backbreaking labor, the urbanite took nearly everything around him for granted. He expected the luxurious lifestyle to always be with him.

Once the Great Stock Market Crash struck, the urbanite abruptly faced the reality of hardship. Being far more cultured and economically sauve then his farming counterpart, the city populace had staked the majority of their economic structure in the rising stock market. The urbanite was either one of two types - one, a business owner or investor who personally owned stock shares, or two, a factory/corporate worker whose job security depended upon the market’s proficiency. While the farmer staked his economic existence in the land, the urbanite staked his in speculative value. There was nothing that could fully deprive the farmer of his live style, but all it took was the panic towards an overestimated market for the city denizen to watch his vanish in a puff of smoke.

unemployment.jpg
Unemployment offices in American cities found themselves flooded with applicants seeking relief.

Following the Great Stock Market Crash and in the two years after, urban life lay in ruins. Those pieces of paper that were once worth an unimaginable amount of money, were worth more as a heating source. Investors were left with nothing. Factory workers were laid-off en mass to return to their families in disgrace. Business owners either watched helplessly as they went from the black to the red, or in the case of small operations, had to close their doors all together. The city went from wealth to abject poverty in the matter of a few short years.

Because much of a cities economy rested on the production of luxury consmable goods and services, and comsumers simply did not have the money to sustain a high living standard, devestation spread throughout every major metropolitan area across the United States. Unemployment reached 25% in the early 1930’s, primarily effecting those that lived in and around the city. If you lived in New York, Boston, or Chicago you either knew or experienced for yourself what it was like to loose your home and be thrown to the street with the clothes on your back.

Without shelter to shield themselves from the weather, nor money to put food in their mouths, a mass migration began to take hold over the dimming lights of American cities. Where once people had fled the countryside for the highrises of the city, people found themselves going back to the rural landscapes. This time it was not by choice, but out of neccessity - out of a chance for oppurtunity of any kind. What had made life easier for farmer during the Great Depression is what attracted city folk, and that was the ability to live off the land.

migrantcamp.jpg
The promise of a better life outside the city often lead to even worse living conditions as migrant worker camps sprung up across America.

For many who had the know-how, the transistion from urban pleasures to rural toils proved fruitful as they could now provide what was necessary for themselves and their family. While for many others it proved to be nothing more then a nomadic trip through the countryside of America in search of something, anything better. Migrant worker camps sprung up throughout America where desperate and poor men, women, and child would perform the hardest, arduous work for next to nothing. At the migrant camps, for shelter families crowded into tents that formed minature cities. Sanitation was deplorable with the nearest river often acting as both toilet and bathtub. Life had become, for them, a living nightmare that receded from memory only in sleep.

For urbanites of the 20’s, life had been turned upside down in the blink of an eye. Their life’s where thrown into absolute disarray as the money and jobs dried up. Having gone from a comfortable, almost carefree macrocosm of existence into a struggle that never knew what the next day might bring, many felt betrayed and cheated by both big business and the government. There was an acute sense within the city during the early years of the Great Depression that it was a powder keg attached to a lit fuse. Yet, along with feeling deceived, urban inhabitants carried with them the loss of hope and dreams. To speak to many who were hit the hardest, unable to survive adequately, there was a dreary sense of disownment to their plight. It left part of the Roaring 20’s generation existing only as a past success, succumbing to any part of a rebirth in the future; leaving a portion of disaffected citizens unwilling to care what path their country might take next as life was too hard to ever think about anything larger then food, shelter, and surviving.
 
Last edited:
Seidita said:
Bad times :( . My Great grandfather lost everything. Most valuable the house he built himself. Really impressed with the progress so far updates :D

Bad times indeed. I or anyone who didn't experience it first hand couldn't possibly fathom what people had to endure during those times. Your great-grandfather is definitely a survivor of the hardest kind.
 
Noooo! This can't end like this! Please give us the next update! For God's sake, man, the fate of Americans every where rides on this!
 
I know I might be in a minority here, but I do not really understand what is particularly 'special' about the Great Depression.

Anyway, very evocative writing. Keep it up.
 
Very impressive writing jmazur. This AAR (as well as your Norwegian AAR) is a very detailed and compelling read. Keep up the good work! :)