Social and economic impacts of the Great Depression on California

Social and economic impacts of the Great Depression on California

The 1930s was the period of hard times for California, the nation, and the entire world. This particular situation resulted from the crash of the United States stock market of the United States, initiating the most severe economic depression not only in California but across the western world. This situation was compounded by the prolonged drought in the American Midwest, which destroyed farms and crops. For most millions of individuals and businesses, fear and failure crippled in as prosperity and optimism had been before the economic decline. The great crash meant that owners of the manufacturing plants could no longer sell their goods and therefore laid off the workers. Lack of employment caused the workers to lose their savings and unable to make purchases causing additional businesses to close down. Families fell into poverty, and businesses failed while the response to the ordeal was ineffective and confused.

There was the resurgence of nativism, and xenophobia was experienced during the Great Depression. The nativists of California eagerly sought the scapegoats to be blamed for the hard economic times of the 1930s. This anti-foreign hostility was first encounters by the Filipinos. There were allegations by the white workers that immigrants from the Philippines contributed to the economic threat to the native-born workers, which fueled anti-Filipino riots in various rural counties, in San Francisco and San Jose. As a result, the mass repatriation programs which involved forced deportations. Besides, racial discrimination rose towards the African Americans, and these groups were the first to be laid off. Intensified racial discrimination led to distrust and resentment and thus increasing the inequality issues as people were regarded as undervalued members of the society.

The Great repression contributed to the more significant number of Dust Bowl refugees. The drought in the farmlands of Texas, Oklahoma, and Arkansas contributed to the plights in California. Most of the Dust Bowl’s residents moved to California with the hope of finding a better life and a good job. However, the scarcity of jobs and the hostility by Californians to the newcomers left them as refugees.

The rate of crimes increased rapidly as a result of the great depression. Many jobless workers resulted in petty crimes such as theft to cater for their basic needs. The rates of suicide increased as well as increased cases of malnutrition. Also, the prostitution rate increased as most desperate women devised ways to pay the bills. Many unemployed individuals resorted to alcoholism as Americans sought outlets for escape, which was heightened by the repeal of prohibition in 1933. During this time, most individuals switched to cheaper cigarettes as cigar smoking became too expensive.

Failure of the banks was one of the significant economic impacts of the Great Depression in California. After the market crash, belief and confidence in the United States’ financial system became practically nonexistent, affecting the banks to a greater extent. Most Americans started pulling their savings out of the banks and preferred buying gold or hoarding it. As a result, banks lacked sufficient funds to cover all withdrawals and hence the failure of a large number of banks.

California turned into a pipe city during the great depression as a result of the homeless. Thousands of jobless workers, together with their families, put up in makeshift encampments in the 1930s. Out-of-work residents stayed in one of these villages close to downtown Oakland. There were conditions provided for one to qualify for Pipe City’s citizenship, which included being jobless, among other devastating situations.

In conclusion, the period of great depression gave rise to great turmoil for California.

However, these struggles were lessons that had to be learned by the Federal Reserve and the government on how to evade such incidences of recession, changing into a depression of such magnitude ever again.