Causes of the Great Depression
The Great Depression was the worst economic slump ever in U.S. history, and one which spread to virtually all of the industrialized world. The depression began in late 1929 and lasted for about a decade. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade. The misdistribution of wealth in the 1920's existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the misdistribution of wealth, caused the American economy to capsize.
Taken from a paper by Paul Alexander Gusmorino 3rd
For more information about the causes of the Great Depression, click here.
Mankato during the Great Depression
The Great Depression did not hit Mankato as hard as many areas of the country, although it did take its toll. Many families lacked proper food, clothing, and shelter during the Depression. However, Mankato's businessmen and charity organizations did what they could to alleviate these hardships. There are many reports in newspaper articles from the time of local businesses donating food and toys to families at holidays.
Thanksgiving during 1930 was a hard one. There was no food in many of the houses around Mankato, so Captain L.J. Hagie of the Volunteers of America went around to area business asking for donations for needy families. Of the business he solicited, only two did not give something. Local farmers donated vegetables and other produce. On Thanksgiving Day, baskets containing cans of peas, milk, tomatoes, four pounds of rice, three pounds of sugar, five pounds of flour, a loaf of bread, potatoes, cabbage, pumpkin, squash, butter, onions, and a large chicken, were sold to 48 needy families for $3 to $5 a basket depending on the size of the family. In one home, a child cried, "Oh mama, now we can eat!" according to the Nov 27, 1930 issue of the Free Press. On Thanksgiving Day, a free meal was given to all the families in the area who had no home.
Throughout the Depression, Mankato citizens continued to show their kindness. During Christmas of 1932, area business and local charities distributed food, clothing and toys to 200 families in the Mankato area. When a large number of fish were caught at Rapidan Dam during the early months of 1934, the fish was given to needy families. Wood chopped along Glenwood Avenue during January of 1932 was given to poor families for warmth.
President Franklin Roosevelt's work programs also benefited many citizens in the area. Because of the lack of work in the area, many men joined the Civilian Conservation Corps. The CCC took young men between the ages of 18 and 25 and put them to work building public areas. The CCC was entirely voluntary. Another program which benefited the area was the Works Progress Administration (WPA) that employed many men and women. The WPA employees built culverts, bridges, dams, building and did rock work. Blue Earth County had 172 on the WPA rolls in 1937, 451 in 1938, and 287 by 1940.
Source:
Mankato Free Press Articles 1929-1934
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