Pearson Edexcel · A-Level · History
Course version: 9HI0 · Version from Sept 2015
The spread of the depression, 1929–32: growth of unemployment; collapse of…
Full specification wording
Depression and New Deal, 1929–38: The spread of the depression, 1929–32: growth of unemployment; collapse of GDP; effects on workers, families, farmers and ethnic minorities; ‘gangsterism’.
After the Wall Street Crash in October 1929, depression spread through the US economy.
Checked against the Pearson Edexcel 9HI0 specification (opens in a new tab) on .
- Point 1 of 4
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
After the Wall Street Crash in October 1929, depression spread through the US economy. Unemployment grew from around 1.5 million in 1929 to roughly 12–13 million by 1932, about 25% of the workforce. GDP collapsed from about $104 billion in 1929 to around $58 billion in 1932, a fall of roughly 44%. Workers faced wage cuts, short-time working and dismissal; families lost homes and savings as banks failed. Farmers suffered falling crop prices and foreclosures, worsened by the Dust Bowl. Ethnic minorities, especially African Americans and Hispanic workers, faced higher unemployment and discrimination. ‘Gangsterism’ flourished as Prohibition created black markets; organised crime figures like Al Capone gained power and public notoriety amid economic desperation.
What earns the marks
- Unemployment rose sharply from about 1.5 million in 1929 to around 12–13 million by 1932, roughly 25% of the labour force.
- GDP fell from about $104 billion in 1929 to around $58 billion in 1932, a decline of approximately 44%.
- Workers experienced wage cuts, short-time working, dismissal and loss of bargaining power; many families lost homes and savings when banks failed.
- Farmers faced falling prices for crops such as wheat and cotton, foreclosures and, in the Plains, the environmental disaster of the Dust Bowl.
- Ethnic minorities, including African Americans and Hispanic workers, suffered disproportionately high unemployment and discrimination in relief and employment.
- ‘Gangsterism’ grew from Prohibition-era organised crime; figures such as Al Capone exploited demand for illegal alcohol and gained influence during the depression.
Common mistakes and how to put them right
Stating that unemployment reached 25 million by 1932.
Put it right: About 12–13 million people were unemployed, roughly 25% of the workforce.
Claiming GDP fell by 25% between 1929 and 1932.
Put it right: GDP fell from about $104 billion to around $58 billion, a fall of approximately 44%.
Treating all Americans as equally affected.
Put it right: Workers, families, farmers and ethnic minorities experienced different and often more severe effects, with African Americans and Hispanic workers facing additional discrimination.
Exam tips
- Use specific figures for unemployment and GDP to support analysis of the scale of the depression.
- Link each effect to a named group, such as workers, families, farmers or ethnic minorities, to show understanding of diversity of experience.
- When discussing ‘gangsterism’, connect it to Prohibition and economic desperation rather than treating it as separate from the depression.
Try the lesson
The start of the Depression and New Deal, 1929–38: The spread of the depression, 1929–32: growth of unemployment; collapse of GDP; effects on workers, families, farmers and ethnic minorities; ‘gangsterism’. lesson, made from checked teaching notes for this specification point.
Have a go first
Which of the following best describes the primary cause of the severe economic hardship experienced by American farmers between 1929 and 1932?
Listen
After the Wall Street Crash in October 1929, depression spread through the US economy. Unemployment grew from around 1.5 million in 1929 to roughly 12–13 million by 1932, about 25% of the workforce. GDP collapsed from about 104 billion in 1929 to around 58 billion in 1932, a fall of roughly 44%. Workers faced wage cuts, short-time working and dismissal; families lost homes and savings as banks failed. Farmers suffered falling crop prices and foreclosures, worsened by the Dust Bowl. Ethnic minorities, especially African Americans and Hispanic workers, faced higher unemployment and discrimination. Gangsterism’ flourished as Prohibition created black markets; organised crime figures like Al Capone gained power and public notoriety amid economic desperation. A strong answer earns marks for these points. Unemployment rose sharply from about 1.5 million in 1929 to around 12–13 million by 1932, roughly 25% of the labour force. GDP fell from about 104 billion in 1929 to around 58 billion in 1932, a decline of approximately 44%. Workers experienced wage cuts, short-time working, dismissal and loss of bargaining power; many families lost homes and savings when banks failed. Farmers faced falling prices for crops such as wheat and cotton, foreclosures and, in the Plains, the environmental disaster of the Dust Bowl. A common slip: stating that unemployment reached 25 million by 1932. Instead, about 12–13 million people were unemployed, roughly 25% of the workforce. Exam tip: Use specific figures for unemployment and GDP to support analysis of the scale of the depression.
Key words
Say what each word means before you turn the card.
Economic collapse and its human consequences
Try answering aloud or in your head before turning the card.
Social hardship and inequality
Try answering aloud or in your head before turning the card.
Government and organised crime
Try answering aloud or in your head before turning the card.
Regional and ethnic disparities
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See every definition
- Economic collapse and its human consequences
- GDP collapsed from about $104 billion in 1929 to around $58 billion in 1932, a fall of roughly 44%, while workers faced wage cuts, short-time working and dismissal.
- Social hardship and inequality
- Families lost homes and savings as banks failed, and ethnic minorities, especially African Americans and Hispanic workers, faced higher unemployment and discrimination.
- Government and organised crime
- ‘Gangsterism’ flourished as Prohibition created black markets, and organised crime figures like Al Capone gained power and public notoriety amid economic desperation.
- Regional and ethnic disparities
- Farmers suffered falling crop prices and foreclosures, worsened by the Dust Bowl, while ethnic minorities faced disproportionately high unemployment and discrimination in relief and employment.
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