Question Home

Position:Home>History> How much did prices go down during the Great Depression?


Question: How much did prices go down during the Great Depression!?
Best Answer - Chosen by Asker:
Contra Sinclair, prices plummeted! And was a deflation disaster!.

As far as wages, Hoover encouraged businesses NOT to lower wages!.!.!. but they could not afford that and many that tried went bankrupt, so that ALL their employees lost their jobs!.


Some numbers I'm seeing:
"Prices fell 25%, 30%, 30%, and 40% in the UK, Germany, the US, and France respectively from 1929 to 1933!. These were the four largest economies in the world at that time!."
http://www!.shambhala!.org/business/goldoc!.!.!.


"massive financial problems, including defaults, bankruptcies, and bank failures, were endemic in America's worst encounter with deflation, in the years 1930-33--a period in which !.!.!. the U!.S!. price level fell about 10 percent per year!."
from 'Deflation: Making Sure "It" Doesn't Happen Here' - Remarks by Governor Ben S!. Bernanke Before the National Economists Club, Washington, D!.C!.
November 21, 2002
http://www!.federalreserve!.gov/BOARDDOCS/!.!.!.

To understand just how devastating that was read the section ("Deflation: Its Causes and Effects ") in which that quote appears!.Www@QuestionHome@Com

Prices went down to a certain extent, but the Great Depression was more about people having lower wages or no job at all!.Www@QuestionHome@Com