Background to a better understanding of To Kill a Mockingbird.

1. Alabama’s economy in the 1930’s
Itay sela
Tomer Abarbanell weiss
Elad Mileikowsky
Asaf jokel

2. Throughout the 1920s a long wave took stock prices to
peaks never before seen. From 1920 to 1929 stocks raised
more than four times in value. Many investors became
convinced that stocks were a sure thing and borrowed
heavily to invest more money in the market.

3. But in 1929, the bubble burst and stocks started down an even
more steep cliff. In 1932 and 1933, they hit bottom, down about
80% from their highs in the late 1920s. This had sharp effects on
the economy. Demand for goods declined because people felt
poor because of their losses in the stock market. New
investment could not be financed through the sale of
stock, because no one would buy the new stock.

4. The great depression •
The Great Depression was a severe worldwide economic depression in the •
decade before World War II. The timing of the Great Depression varied
across nations, but in most countries it started in about 1929 and lasted
until the late 1930s or early 1940s. It was the longest, most widespread, and
deepest depression of the 20th century, and is used in the 21st century as
an example of how far the world's economy can fall. The depression
originated in the United States, starting with the stock market crash of
October 29, 1929 (known as Black Tuesday), but quickly spread to almost
every country in the world.

5. Effects of the great depression
The Great Depression had devastating effects in almost every country, rich and •
poor. Personal income, tax revenue, profits and prices dropped, and international
trade plunged by a half to two-thirds. Unemployment in the United States grew to
25%, and in some countries rose as high as 33%. Cities all around the world were
hit hard, especially those dependent on heavy industry. Construction was virtually
stopped in many countries. Farming and country areas suffered as crop prices fell
by approximately 60 percent. Facing falling demandment with few other sources of
jobs, areas dependent on primary sector industries such as cash cropping, mining
and logging suffered the most.
Countries started to recover by the mid-1930s, but in many countries the negative •
effects of the Great Depression lasted until the start of World War II.