ECON 2200 Lecture Notes - Lecture 22: Stock Market, Deflation
14 May 2018
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ECON 2200
Lecture 22
1. Temporary recovery 1936-1938
• Unemployment Rate: (Figure 23.3)
o 1929: UR = 3.2% (1.5 million)
o 1933: UR approaching 25%
1. 11.5 mill unemployed
2. 2.2 mill in government-created emergency jobs
Federal government had put in emergency work
programs to give jobs (jobs created to keep
unemployment down) – these people would have
been “unemployed” had it not been for these
programs. So… do we count them as unemployed
or not?
Unemployment would be much higher if you
count them unemployed – would actually
reach 25% level about 1933
3. Many more "underemployed"
4. Figure 23.3 does not show the people who are “under
employed” (If you work one hour for one week, you are
considered employed. So, the most minimal wage and
minimal hours are still included as employed.)
A lot of people working beneath their skill level
A lot of people working part-time, but wished for
more hours
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Lecture 22: temporary recovery 1936-1938, unemployment rate: (figure 23. 3, 1929: ur = 3. 2% (1. 5 million, 1933: ur approaching 25, 11. 5 mill unemployed, 2. 2 mill in government-created emergency jobs. Federal government had put in emergency work programs to give jobs (jobs created to keep unemployment down) these people would have been unemployed had it not been for these programs. So, the most minimal wage and minimal hours are still included as employed. ) A lot of people working beneath their skill level. A lot of people working part-time, but wished for more hours. 1933: ur (official measure) and underemployed = 33% of labor force: urban minorities most affected due to, discrimination, heavy employment in service sector. In bad times, first things you let go of are luxury items and unneeded service: 1931 survey of 10 major us cities found that ur for urban. African-americans was around 50: duration, ur remained > 10% for a decade, many never recovered.
