The Great Depression

How the GNP affected the Great Depression

What is GNP?

GNP (Gross National Product) is the market value of sum of the values of products and services produced in one year in a country in foreign or native land. The GNP is very important in assessing the economy of a nation and acts as a method to verify whether or not any changes would be needed to adjust the economy. It differs from the GDP (Gross Domestic Product) in that the GDP only accounts for the total worth of the native land.

After the initial drop between 1920 and 1921, the GNP steadily grew, with a couple minor setbacks, to great proportions in 1929. Following the 1929 Wall Street crash, the GNP proceeded to plummet rapidly to new lows. This marked the beginning of the Great Depression.

Prosperity! Or not....

It might seem like this period of prosperity would shower everyone with good tidings; however,the workers did not benefit from the prosperity of the 1920s, because the management was greedily obsessed in making more money. Throughout this period, the wages of the workers remained at approximately the same point.

Life During the Great Depression

Worst of the Worst

The Depression continued to worsen until 1932 where it hit rock bottom, because that was the first time the GNP dropped below 70 since 1920. There was also a high rate of unemployment, a high number of business failures, and a high number of bank closures. The combination of these factors made the year 1932 the worst year of the Great Depression.

1930's Great Depression and Dust Bowl in Photos

Why President Hoover Lost his Job

As the 1932 presidential elections drew closer, President Hoover's prospects at a second term grew smaller. The primary reason that President Hoover was not re-elected in 1932 was because of the steep decline of the U.S. economy. The drop did not convince the voters to elect President Hoover for another term.