While the 1920s had roared, the 1930s had been snoring. Company growth had declined by the late 1920s, profits had started to decline and many people had lost their jobs. Many companies which borrowed money from banks could not repay their loans. Prices fell, but incomes grew. And a lot of people were jobless. With little employment, the demand for goods and services decreased by citizens. The grim realities of bank suspensions, unemployment, and financial instability posed a problem for the United States between 1929 and 1933.
The concept bank suspension involves all banks closed to the public, whether permanent or temporary, due to financial problems by supervisory authorities or boards of directors of the banks. Banks that closed under a special declaration of holiday and stayed closed only during the specified holiday are not considered to be suspensions.
From 1929 to 1933, operations were suspended by as many as one-fifth of all banks and about 15 percent of people's life savings lost. Americans lost confidence in banks and withdrew their capital.
The unemployment rate is the proportion of the labor force that is eager and capable of working, does not presently have a job, and is actively pursuing jobs. The work force is made up of people aged 16 and over who are employed or actively looking for work. If there is unemployment, production in the economy is less than its capacity.
Personal income per capita shows the average income per person.
Gross Domestic Product (GDP) measures the overall market value of all final goods and services in an economy for a given time period, typically a year. Real Gross Domestic Product is Inflation-adjusted GDP.
