Causes of the Great Depression
Second, there are the monetarists, who believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms.
African-American socialism
The Great Depression of the 1930s began after the stock market crash in 1929. However, it hit the Black population much harder than Whites. Black people were forced out of their already unskilled jobs. This caused them to face an unemployment rate of more that 50 percent, compared to their counterparts of about 30 percent. Black workers were already being paid 30 percent below the white workers. Black people gained no relief of their trials from the Roosevelt administration because the National Recovery Act (NRA) was later referred to, by African-Americans, as the Negro Removal Act. NRA public works rarely hired Blacks during this time, even though the stated goal was to not discriminate while hiring. Although the American Federation of Labor president, William Green, did acknowledge civil rights and asserted to oppose Jim Crow locations, there was nothing enforcing the affiliated unions to follow these allegations. Because many Black laborers were without support, they formed unions of their own, like the Brotherhood of Sleeping Car Porters. Because these men sought their own support, they were often lynched in both the North and the South. This situation was soon turned around in 1934 during a strike wave. Labor strikes spread all over the country from Toledo to Minneapolis to San Francisco. These events consisted of an organization among the unskilled and mass production workers, whom all were not Black. As expected during this time, racism was the center of the industrial unionism. This is a labor union organizing method in which all workers of the same industry are organized into the same union. For instance, workers in the plant industry were placed into the same labor union, nationwide, regardless of an individual's particular job. Blacks, in the most dangerous, dirty and low-paid jobs, were in the same union as better-paid Whites. Because of these racial injustices, African-Americans remained in the lowest ends of poverty, without legal support, throughout the years of the Great Depression.