Impact on economy

• Impact on Banks

  Americans lost confidence in Banks

  • run on the banks led to the closure of 9,000 banks

  Withdrew all their savings

  • Americans lost $2.5 billion savings
• Impact on Agriculture

  Prices for wheat and cotton already low, continued to fall - overproduction.

  Farmer income fell 60%

  1/3 farmers losing land - protests

  Migration: 1930s, 2 million farmers moved to Urban areas
• Environmental crisis

  A drought - affected 17 million in East of USA

  (dust storms in Great Plains)

  • In 1933 there were 38 Black blizzards.

  MORE migration (1930-35: 1 million people migrated)

  Nicknamed 'ollies': became low paid workers in California (starvation wages)
• Impact on Industry


  • Decrease of 39% in exports between the years 1929 to 1932.

  Particularly less demand for luxury goods.

  • Profits turned into losses (cut wages by 50%)

  Many made redundant as 17,000 factories were forced to close