108-750: Share Our Wealth was a movement that began in February 1934, during the Great Depression , by Huey Long , a governor and later United States Senator from Louisiana . Long first proposed the plan in a national radio address, which is now referred to as the "Share Our Wealth Speech". To stimulate the economy, the Share Our Wealth program called for massive federal spending, a wealth tax , and wealth redistribution . These proposals drew wide support, with millions joining local Share Our Wealth clubs. Roosevelt adopted many of these proposals in
216-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,
324-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around
432-429: A "Household Estate" of $ 5,000 (a Basic Household Grant worth $ 118,600 in 2024) and a minimum annual income of $ 2,000–$ 3,000 (a Universal Basic Income to each household of $ 47,450–$ 71,175 per year, 2024), or one-third of the average family home value and income. Long intended for his reforms to bring an end to the Great Depression. Long's plans for the "Share Our Wealth" program attracted much criticism from economists at
540-541: A 100% tax on fortunes greater than $ 100 million. The second bill would limit annual income to $ 1 million ($ 23.72 million in 2024), and the third bill would cap individual inheritances at $ 5 million ($ 118.6 million in 2024). In February 1934, Long introduced his "Share Our Wealth" plan over a nationwide radio broadcast. His plan was to minimize wealth inequality, via Federal tax and spend policy. An individual's right to wealth would be restricted to: The taxes raised would guarantee every family what Long called
648-412: A Manger founder Julian Metcalfe ) and the big game hunter and artist General Douglas Hamilton , as well as Island Records founder Chris Blackwell . In sports, the school produced the first two Wimbledon champions ( Spencer Gore and Frank Hadow ) as well as FA Cup founder C. W. Alcock and current England rugby international players Billy Vunipola , Maro Itoje and Henry Arundell . Alumni in
756-581: A circulation of 300,000, with some issues reaching over 1.5 million. Long's radical programs were very attractive to union-members; Teamsters president Daniel J. Tobin expressed his growing concerns to Roosevelt. Long also drew international attention: writer H. G. Wells traveled across the Atlantic just to interview Long. Wells noted that Long was "like a Winston Churchill who has never been at Harrow . He abounds in promises." Any presidential ambitions which Long might have had were cut short when he
864-477: A dark blue jacket known as a "bluer" with light grey trousers known as "greyers". With these are worn a white shirt, black tie, black shoes and an optional blue jumper. Boys also wear a Harrow hat, a straw hat with a dark blue band similar to a boater , but shallower in crown and broader in brim. The School blue-and-white woollen scarf and dark blue woollen overcoat may be worn in cold weather. Variations include boys who are monitors ( prefects ) who are allowed to wear
972-604: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to
1080-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to
1188-420: A jumper of their choice of colour, and members of certain societies who may earn the right to replace the standard school tie with one of a variety of scarves, cravats , neck and bow ties of their society. Sunday dress, which is worn every Sunday up to lunch and on special occasions such as Speech Day and songs, consists of a black tailcoat , a black single-breasted waistcoat and striped trousers, worn with
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#17327758647031296-617: A local landowner and farmer, under a royal charter of Queen Elizabeth I . The school has an enrolment of about 820 boys, all of whom board full-time, in twelve boarding houses. It was one of the seven public schools selected for reform in the Public Schools Act of 1868 . Harrow's uniform includes morning suits , straw boater hats , top hats and canes . Its list of distinguished alumni includes seven former British prime ministers : Aberdeen , Perceval , Goderich , Peel , Palmerston , Baldwin and Churchill , as well as
1404-515: A massive decline in income and to employment that was well below the average. In such a situation, the economy reached equilibrium at low levels of economic activity and high unemployment. Harrow School Harrow School ( / ˈ h ær oʊ / ) is a public school (English boarding school for boys) in Harrow on the Hill , Greater London, England. The school was founded in 1572 by John Lyon ,
1512-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside
1620-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and
1728-525: A room to himself. The School has a book of songs, of which the best known is Forty Years On . In the 19th century, most schools had a school song, usually in Latin, which they sang at the beginning and end of term. Harrow had a master, Edward Bowen , who was a poet and a music teacher, and John Farmer , who was a composer. Between 1870 and 1885, these two wrote a number of songs about school life. The inspiring, wistful, amusing and thought-provoking words and
1836-460: A series of bills collectively known as "the Long plan" for the redistribution of wealth . The first bill proposed a new progressive tax code designed to cap personal fortunes at $ 100 million ($ 2.372 billion in 2024 dollars). Fortunes above $ 1 million ($ 23.72 million in 2024) would be taxed at 1%; fortunes above $ 2 million ($ 47.45 million in 2024) would be taxed at 2%, and so forth, up to
1944-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In
2052-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of
2160-422: A space in a large house to become available (hence the use of the term large house in this article). A twelfth large house, Lyon's, was built in 2010. House Masters, Assistant House Masters and their families live in the boarding Houses and are assisted by House Tutors appointed from the teaching staff. The House Master oversees the welfare of every boy in his care; for parents, he is the main point of contact with
2268-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to
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#17327758647032376-432: A top hat, and carry canes. Harrow School divides its pupils, who are all boarders , into twelve Houses , each of about seventy boys, with a thirteenth house, Gayton, used as an overflow. Each House has its own facilities, customs and traditions, and each competes in sporting events against the others. Until the 1950s there existed what was known as 'small houses' where only 5–10 boys stayed at one time while they waited for
2484-437: A wealthy local farmer. The school's formal name is still 'The Free Grammar School of John Lyon within the town of Harrow-on-the-Hill'. The charter described this as a re-endowment, and there is some evidence of a grammar school at Harrow in the mid-16th century, but its location and connection with Lyon's foundation are unclear. Evidence for earlier schools, possibly connected with the chantry of St Mary (established in 1324),
2592-597: A white shirt and black tie. Boys with sports colours may wear a grey double-breasted waistcoat; members of the Guild (a society for boys who have achieved distinction in art, music or drama) may wear maroon double-breasted waistcoats with maroon bow ties; members of the Philathletic Club (a society for boys with achievements in sport) may wear black bow ties alongside grey double-breasted waistcoats. School monitors (prefects) may wear black double-breasted waistcoats and
2700-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation
2808-490: Is part of the routine that is the essence of the English Public School system... the wonder of other countries". In 2005, the school was one of fifty of the country's leading independent schools which were found guilty of running an illegal price-fixing cartel , exposed by The Times , which had allowed them to drive up fees for thousands of parents, although the schools said that they had not realised that
2916-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated
3024-423: Is the oldest fixture at Lord's (see: Eton v Harrow ). Eton won the match in 2013, and Harrow in 2014 and 2015. Harrow has its own unique style of football called Harrow Football . Currently, the school offers around 30 sports activities for students such as archery, badminton, hockey and judo. As in most boarding schools, for many years there was a system of 'fagging' whereby younger boys carried out duties for
3132-655: Is weak. In the original charter six governors were named, including two members of the Gerard family of Flambards, and two members of the Page family of Wembley and Sudbury Court. The founder John Lyon died in 1592, bequeathing his estate to two beneficiaries: the school and the maintenance of two roads, the Harrow Road and the Edgware Road, both going to London, 10 miles (16 km) away. The Road Trust received by far
3240-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that
3348-607: The Democratic Party and the Roosevelt administration. By 1935, the society had over 7.5 million members in 27,000 clubs across the country. Long's Senate office received an average of 60,000 letters a week, resulting in Long hiring 48 stenographers to type responses. Of the two trucks that delivered mail to the Senate, one was devoted solely to mail for Long. Long's newspaper, now renamed American Progress , averaged
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3456-699: The National Labor Relations Board , Aid to Dependent Children , and the Wealth Tax Act of 1935 . Each tenet of the Second New Deal seemed to foil one of Long's corresponding proposals. For example, Roosevelt's National Youth Administration provided part-time employment to the country's youth, counteracting the appeal for Long's free college proposal. Roosevelt reportedly admitted in private to trying to "steal Long's thunder." Great Depression The Great Depression
3564-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of
3672-929: The Nobel Prize in Physics in 1904; John Galsworthy , winner of the 1932 Nobel Prize in Literature ; and Winston Churchill , who also received the Nobel Prize in Literature in 1953. Other alumni include writers Lord Byron , Anthony Trollope , Sir Terence Rattigan , Simon Sebag-Montefiore , and Richard Curtis , the Gerald Grosvenor, 6th Duke of Westminster and prominent reformist Anthony Ashley-Cooper, 7th Earl of Shaftesbury , military commanders such as Harold Alexander, 1st Earl Alexander of Tunis and Sir Peter de la Billiere , and business people (including DeBeers chairman Nicky Oppenheimer , Pret
3780-527: The Royal Albert Hall . The sport squash (originally called 'Squasher') was invented in Harrow out of the game rackets around 1830. It spread to other schools, eventually becoming an international sport. An annual cricket match has taken place between Harrow and Eton College at Lord's Cricket Ground since 1805. It is considered to be the longest-running cricket fixture in the world and
3888-511: The Second New Deal . Long believed that the underlying cause of the Great Depression – which he called "Mr. Roosevelt's depression" – was the growing disparity between the rich and everyone else. For most of his political career, he focused his speeches and efforts on the "little man", referring to the rural poor . The Share Our Wealth program was intended to become the capstone project for Long's agenda. In March 1933, Long offered
3996-539: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,
4104-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It
4212-813: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with
4320-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there
4428-521: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in
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4536-489: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit
4644-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There
4752-642: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade
4860-481: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on
4968-456: The School. Each House has a resident matron and sick room. The matrons are supported by the School's Medical Centre where trained nursing staff offer round-the-clock care. The medical centre is under the direct supervision of the school doctor who is available on the Hill every day for consultation. There are no dormitories: a boy shares his room for the first three to six terms and thereafter has
5076-544: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This
5184-490: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending
5292-685: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in
5400-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had
5508-638: The Wall Street crash, after which the slide continued for three years, which was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in
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#17327758647035616-745: The War Memorial building (1926), designed by Herbert Baker to mark the loss of former pupils in the First World War , are all Grade II* listed buildings . A total of 27 school buildings are Grade II listed, including the Headmaster's House (1843) by Decimus Burton ; the Museum Schools [Butler Museum] (1886) by Basil Champneys ; and the Music Schools (1890) by Edward Prior. Everyday dress for boys at Harrow consists of
5724-474: The arts and media industry include actors Edward Fox , Benedict Cumberbatch and Cary Elwes , photographer Nikolai von Bismarck , singers David Dundas and James Blunt , pianist James Rhodes , horse racing pundit John McCririck , and Mark Thatcher , son of Margaret Thatcher . Fictional characters who have attended Harrow include Brett Sinclair of the TV series The Persuaders! , Withnail and Uncle Monty from
5832-536: The attractive tunes, made the songs very popular. Successors to Bowen and Farmer have added to the collection. The songs are sung in House and School concerts several times a term. Winston Churchill was a great lover of Harrow songs and when he returned for a concert as Prime Minister in 1940, it was the first of many annual visits. Churchill Songs is still celebrated in Speech Room each year, and every five years at
5940-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why
6048-573: The beginning of the Depression. The Depression was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on the stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until
6156-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate
6264-456: The building of 1615, although it was extended and re-designed by Charles Robert Cockerell in 1818. It is a Grade I listed building . The majority of the school's boarding houses were constructed in Victorian times, when the number of boys increased dramatically. The Speech Room by William Burges (1877), the chapel (1855) and Vaughan Library (1863), both by George Gilbert Scott , and
6372-404: The change to the law (which had happened only a few months earlier) about the sharing of information had subsequently made it an offence. Each school was required to pay a nominal penalty of £10,000 and all agreed to make ex-gratia payments totalling £3,000,000 into a trust designed to benefit pupils who attended the schools during the period in respect of which fee information was shared. Harrow
6480-462: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which
6588-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by
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#17327758647036696-625: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what
6804-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered
6912-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and
7020-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did
7128-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of
7236-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought
7344-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though
7452-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating
7560-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be
7668-710: The first Prime Minister of India , Jawaharlal Nehru . Twenty Old Harrovians have been awarded the Victoria Cross and one the George Cross . Five monarchs have attended the school: King Hussein of Jordan ; both Kings of Iraq, Ghazi I and his son Faisal II ; the current Emir of Qatar , Sheikh Tamim bin Hamad Al Thani ; and Ali bin Hamud of Zanzibar . Harrow has educated several Nobel laureates: John William Strutt, 3rd Baron Rayleigh , who received
7776-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August
7884-462: The former Indian Prime Minister Jawaharlal Nehru ; numerous former and current members of both Houses of the UK Parliament , several members of various royal families , three Nobel Prize winners, twenty Victoria Cross holders, and many prominent figures in the arts and sciences . The school was founded in February 1572 under a royal charter granted by Queen Elizabeth I to John Lyon ,
7992-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing
8100-469: The greater share, the school's share providing just for the salary of The School Master and some minor provisions. This situation, reasonable at the time because of the need to transport merchandise to market, continued until 1991 when the considerable assets of the Road Trust were reassigned to John Lyon's Charity, a charity to provide educational benefits for the inhabitants of the boroughs through which
8208-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,
8316-527: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at
8424-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with
8532-557: The leader of the Socialist Party of America , on the merits of Share Our Wealth versus socialism . With the Senate unwilling to support his proposals, in February 1934 Long formed a national political organization, the Share Our Wealth Society. A network of local clubs led by national organizer Reverend Gerald L. K. Smith , the Share Our Wealth Society was intended to operate outside of and in opposition to
8640-521: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,
8748-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then
8856-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view
8964-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and
9072-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that
9180-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In
9288-603: The number of free scholars declined. In 1825 there were 17 free scholars and 219 foreigners. In 1876 the Lower School of John Lyon was founded under the authority of the Governors of Harrow School to provide a modern education for local boys. It is now known as The John Lyon School and is a prominent independent school; it remains part of the Harrow School Foundation. The Old Schools remains largely
9396-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during
9504-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in
9612-459: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in
9720-539: The roads pass. It was only after the death of Lyon's wife in 1608 that the construction of the first school building began. Known as the Old Schools, it was completed in 1615. John Lyon's school was founded to provide free education for 30 (later extended to 40) poor boys of the parish. However, the School Master was permitted to accept "foreigners" (boys from outside the parish) from whom he received fees. It
9828-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of
9936-401: The seniors. At Harrow this was phased out in the 1970s and completely banned by 1990. In his detailed history of the school, Christopher Tyerman recorded that in 1796 fagging was compulsory for boys up to the fourth form, and that 50 out of 139 boys were then fags. In 1928, Harrow Master C. H. P. Mayo said of fagging: "Those who hope to rule must first learn to obey... to learn to obey as a fag
10044-580: The short-lived Union Party , a third party effort which ran William Lemke of North Dakota for President in 1936, but under his leadership, the Share Our Wealth movement quickly fell apart. Some historians believe that pressure from Long and his organization contributed to Roosevelt's "turn to the left" in the Second New Deal (1935), which consisted of the Social Security Act , the Works Progress Administration ,
10152-399: The time, who stated that Long's plans for redistributing wealth would not result in every American family receiving a grant of $ 5,000 per year, but rather $ 400/per year, and that his plans for taxation would cap the average annual income at about $ 3,000. They argued that the confiscated fortunes would only yield $ 1.50 per each poor family. In 1934, Long held a public debate with Norman Thomas ,
10260-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and
10368-673: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in
10476-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among
10584-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject
10692-505: Was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered
10800-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did
10908-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of
11016-440: Was featured in a Sky 1 documentary series entitled Harrow: A Very British School in 2013. In February 2016, the actor Laurence Fox claimed Harrow threatened legal action to prevent him discussing the racism, homophobia and bullying he said he encountered as a pupil at the school. Harrow alumni are known as Old Harrovians, among seven British prime ministers were Winston Churchill , Stanley Baldwin and Robert Peel , and
11124-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing
11232-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by
11340-446: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened
11448-461: Was shot by an assassin in Baton Rouge, Louisiana on September 8, 1935; he died two days later. Control of the Share Our Wealth Society fell to Gerald L. K. Smith , who was widely viewed as a political demagogue . Smith brought the Share Our Wealth Society into a brief coalition with the followers of radio priest Charles Coughlin and old-age pension advocate Francis Townsend in support of
11556-423: Was the need for foreigners to find accommodation that led to the concept of boarding. As in all schools of the time, education was based on the languages and culture of the ancient civilisations of Rome and Greece. As the reputation of the school grew through the 19th century, the number of foreigners increased, but the local families became increasingly reluctant to impose on their children a classical education and
11664-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that
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