Great Depression Era Purchasing Power Increase: 1920 -1939

This graph illustrates the gain in purchasing power for U.S. consumers over the twenty-year period 1920-1939 when prices of goods were under pressure during the period. The medium gray bars represent the increase in real purchasing power for consumers as measured by a constant 1929 dollar, with 1929 equaling 100% on the right scale. The blue Total Consumer Outlay line is the total amount in nominal or unadjusted dollars for each year. The orange Total Consumer Outlay line is adjusted for the constant 1929 dollar, and again, illustrates the real increase in purchasing power. The periods of recession are indicated in light gray in this graph; notice that the gain in real purchasing power is coincident with the recessionary periods, with the largest gains occurring during the 1929-1933 period.

Total Consumer Outlay measured in nominal dollars shows an increase from $63.01 billion in 1920 to $67.9 billion in 1939, or 7.75%. Measured in constant 1929 dollars the increase is from $52.2 billion to $85.1 billion, or 63.02%.