Hard Times in Lives: From Great Depression to Great Recession Glen H. Elder, Jr. Carolina Population Center The University of North Carolina at Chapel Hill http://www.unc.edu/~elder Studying Hard Times in Lives Middletown, USA What about “enduring effects?” Limitations of a survey Marienthal, Austria A new kind of study launched in the 1920-30s; longitudinal in design. A kind of “Hubble telescope of the social sciences.” Basic Model: Children of the Great Depression Relative Economic Deprivation (‘29 vs. ‘33) In Middle & Working Classes (’29) Family Adaptations and Change, 1930-40s Impact on Children & Adolescents Adult Life Course 1940s – 80s Adult Behavior & Personality 1960s – 80s Oakland and Berkeley cohort members by age at historical events Age of cohort members Date Event Oakland Berkeley 1929-30 Onset of Great Depression 9-10 1-2 1932-33 Crisis of Great Depression 11-13 3-5 1937-38 Economic Slump 16-18 8-10 1941-45 World War II 20-23 10-12 1974 End of affluent age 54- 46- A Footnote on Emerging Debt Pattern “Way of Life” 1920s – 2009 • 1920s – Paul Douglas’ Observation – Growth of this way of life • Depression consequences of indebtedness – loss of home, car • Post WWII – Credit cards – Diners, American Express, etc. • Popularity of credit card purchases Origins of Agricultural Crisis, USA; 1970-1995 • Rising world-wide demand for food. Inadequate production. • Midwest banks encourage young farmers to expand acreage. Offer much larger loans. • Farm expansion – “from hedgerow to hedgerow.” • Embargo of grain shipments to Soviet Union, 1979-80 • Economic crisis in farm belt – housing starts and retail sales decline by 55%. Farm bankruptcies soar. Farm foreclosure sale in Iowa [65684(8)]. 1933. Retrieved July 21, 2009 from the Franklin D. Roosevelt Presidential Library and Museum website. http://www.fdrlibrary.marist.edu/images/photodb/27-0851a.gif. Building Permits Issued in Study Area, Des Moines, and the U.S. (1977=100) 120% Source: U.S. Census 100% U.S. Percent 80% Des Moines 60% 40% Study Area 20% 0% 1977 1978 1980 1982 1984 1986 1988 1990 1992 Year Hard times 1994, view of a grandmother: “It’s been hard for a lot of our families these last years, and I don’t see it really getting any better.” Iowa Youth and Family Study Design: 451 families with 7th grader and near sibling. Located in 8 counties in Iowa – excellent farmland. 1st Wave – 1989, up to present. Iowa Youth and Family Study Sample composition: Full-time farm 20% Part-time farm 10% Displaced farm 10% Family ties to the land Farm-reared only 35% Non-farm 25% Main story re children’s lives: Attachment to land Social Ties Social well-being, competence, and educational success. Children of the Great Recession: Some Perspectives • Contextual variation – east to west, north to south, and rural to urban (e.g. southern Florida vs. the Carolina Research Triangle). Regional vs. family economic troubles – effects on both levels. • What people bring to the new situation (in particular, context) – temperament, marital ties, gender, life stage. • Alternatives at school leaving – extend education, be entrepreneurial, travel, temporary job. • Double up with parents and sibs, or friends. • Learn to “get along with less.” glen_elder@unc.edu http://www.unc.edu/~elder