Consumer Spending During The Great Depression

From Google answers, here is some data on consumer spending during the Great Depression:

The Crash of 29 did cause a collapse in durable goods spending in 1930 and income uncertainty also caused a decline in non-durable goods spending. Income uncertainty didn't peak till the following year after the gold standard crisis of Sept, 1931 which caused even more decline in spending for durable and non-durable goods alike. Here is a general information demonstrating the change in consumer expenditures from 1928 to through 1933. This information is based on 1987 dollars but still gives an excellent idea of the change.

In billions - 1987 prices

Perishables

Semi-durables

Durables

Services

total

1928

164.3

59.9

38.4

269.6

532.3

1929

168.3

61.7

40.3

284.4

554.8

1930

164.8

56.1

30.9

269

520.8

1931

164.4

53.6

26.4

257.6

501.9

1932

154.1

46.9

20

236

456.9

1933

151.1

42.7

20.2

233.5

447.6

Decrease (1929 to 1933)

89.78%

69.21%

50.12%

82.10%

80.68%


The criteria used for the above figures included the following:

Perishables - Total food, alcohol and tobacco, wood, gas and coal

Semi-durables - Clothing, semi-durable house furnishings, cleaning supplies, stationary, tires and accessories

Durables - Furniture and mattresses, kitchen appliances, china, other durable furniture, motor vehicles and wagons

Services - Personal care, housing, domestic service, other household operation, medical care, personal business, auto repair, gas and oil for motor vehicles, auto installation and tolls, recreation, education, electricity, gas, water, telephone and telex, religion and welfare, traveling by US residents, local transport and intercity transport

My reaction: I highlight this information to emphasize that the pain from this global depression will not be spread equally: it will be concentrated here in the US. Most of the US's imports would fall into the perishables (oil) and semi-durables (cheap stuff from China) categories, and most of the US's exports would be considered durable goods. This means that the US trade deficit is likely to grow much worse.

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