Graph of the Day for June 19, 2010

"Although the big stock market crash occurred in October 1929, unemployment never reached double digits in any of the next 12 months after that crash. Unemployment peaked at 9 percent, two months after the stock market crashed-- and then began drifting generally downward over the next six months, falling to 6.3 percent by June 1930.  This was what happened in the market, before the federal government decided to ‘do something.'"  Thomas Sowell, June 17, 2010.

"The Harding-Mellon plan resulted in tax and spending reductions and pro-business policies to encourage an economic recovery by 1922. Economic historian Jim Powell described the Harding-Mellon economic record:  ‘Federal spending was cut from $6.3 billion in 1920 to $5 billion in 1921. Federal taxes fell from $6.6 billion in 1920 to $5.5 billion in 1921 and $4 billion in 1922...'"  The Tax Education Foundation.

Source:  The Heritage Foundation.  (Raw data at Census Bureau, Series D 1-10.)

Hoven's Index for June 19, 2011

Unemployment rate (% of non-farm employees):

1921:  19.5%

1923:  4.1% 

1930:  14.2% 

1932:  36.8%

Source:  Census Bureau, Series D 1-10.

Graph of the Day Archive.