The lack of large-scale government spending contributed to the rise of mass unemployment. As the financial crisis led to production cuts, workers lost their jobs and had little money to buy goods. In Britain, where unemployment had averaged 12 percent in the 1920s, it averaged more than 18 percent between 1930 and 1935. Far worse was the case of Germany, where in 1932 one in every three workers was jobless. In the United States, unemployment had averaged only 5 percent in the 1920s. In 1933 it soared to about 30 percent: almost 13 million people were out of work (see Map 26.1).

Mass unemployment created great social problems. Poverty increased dramatically, although in most countries unemployed workers generally received some kind of meager unemployment benefits or public aid that prevented starvation. (See “Evaluating the Evidence 26.3: George Orwell on Life on the Dole.”) Millions of people lost their spirit, condemned to an apparently hopeless search for work. Homes and ways of life were disrupted in millions of personal tragedies. Young people postponed marriages, and birthrates fell sharply. There was an increase in suicide and mental illness. Poverty or the threat of poverty became a grinding reality. In 1932 the workers of Manchester, England, appealed to their city officials — a typical plea echoed throughout the Western world:

Only strong government action could deal with mass unemployment, a social powder keg preparing to explode.