The 1980's Farm Crisis
The Anniversary
The 50 year Anniversary of the Kennedy Assassination was November 22, 2013. Anyone of a certain age can easily recall exactly where they were when the news of Kennedy's death broke. The anniversary of this event reflected a nation on the verge of profound changes such as, the civil rights movement, Vietnam War and the Women's movement.
There was another event that occurred on the same date as Kennedy's assassination exactly 20 years later, the financial collapse of a small town Illinois bank, The Atkinson Trust and Savings Bank. It also marked the beginning of profound changes not only on the national level but locally for a small Illinois town.
The Farm Depression of the 1980's
In 1981 then Federal Reserve Board Chairman Paul Volcker dramatically hiked interest rates to break inflation and raise unemployment in the middle of a severe recession. The prime rate reached 21.5% by June 1982. Chairman Volcker has been credited with taming inflation from the 1960's through the 1970's and re-focusing The Federal Reserve Board on containing inflation as it's primary mission. This focus has remained through modern economic times.
Unfortunately Mr. Volcker's action was a devastating blow to any business or individual that relied upon an interest rate sensitive loan. As a result the economy quickly sank into a double dip recession between 1981 to 1982. Inflation did decline from 13.5% in 1980 to 3.25% by 1983 but not without severe human cost.
The primary customers of the Atkinson Trust and Savings Bank were farmers and construction businesses. The Atkinson Trust and Savings Bank was one of many centers of hardship in the Midwest caused by Mr. Volcker's Fed policies. Bankruptcies, business failures and suicides were common events throughout the Midwest as people tried to cope with the dramatic, sudden change in the economic landscape.
The abrupt change in economic policy also marked the beginning of the end to the middle class. President Reagan's policies of union busting, deregulation and tax reform also started the severe concentration of income and wealth to the top 0.01% that is so evident in today's economy.
Stories Wanted From That Time Period
As described in the Home tab of this website we are collecting on-line participatory stories for publication into a final collection and e-book. This on-line participatory chapter is dedicated to remember those that were embroiled in the economic massacre of the 1980's.
Many accounts of that economic meltdown are inspirational in the face of extreme stress and pressure. Other stories depict those that chose the shock and crises of the situation to further their own personal gain. Some families made it through the carnage in tact, but many did not. Please forward your contact number or attached file depicting a personal story from that time period.
Please check back as stories are added.
Following is the first story submitted so far on the corresponding Tab:
1.) How to Steal a Farm and a House
Please submit comments and related stories regarding the farm and rural financial crises of the 1980's below.
The 50 year Anniversary of the Kennedy Assassination was November 22, 2013. Anyone of a certain age can easily recall exactly where they were when the news of Kennedy's death broke. The anniversary of this event reflected a nation on the verge of profound changes such as, the civil rights movement, Vietnam War and the Women's movement.
There was another event that occurred on the same date as Kennedy's assassination exactly 20 years later, the financial collapse of a small town Illinois bank, The Atkinson Trust and Savings Bank. It also marked the beginning of profound changes not only on the national level but locally for a small Illinois town.
The Farm Depression of the 1980's
In 1981 then Federal Reserve Board Chairman Paul Volcker dramatically hiked interest rates to break inflation and raise unemployment in the middle of a severe recession. The prime rate reached 21.5% by June 1982. Chairman Volcker has been credited with taming inflation from the 1960's through the 1970's and re-focusing The Federal Reserve Board on containing inflation as it's primary mission. This focus has remained through modern economic times.
Unfortunately Mr. Volcker's action was a devastating blow to any business or individual that relied upon an interest rate sensitive loan. As a result the economy quickly sank into a double dip recession between 1981 to 1982. Inflation did decline from 13.5% in 1980 to 3.25% by 1983 but not without severe human cost.
The primary customers of the Atkinson Trust and Savings Bank were farmers and construction businesses. The Atkinson Trust and Savings Bank was one of many centers of hardship in the Midwest caused by Mr. Volcker's Fed policies. Bankruptcies, business failures and suicides were common events throughout the Midwest as people tried to cope with the dramatic, sudden change in the economic landscape.
The abrupt change in economic policy also marked the beginning of the end to the middle class. President Reagan's policies of union busting, deregulation and tax reform also started the severe concentration of income and wealth to the top 0.01% that is so evident in today's economy.
Stories Wanted From That Time Period
As described in the Home tab of this website we are collecting on-line participatory stories for publication into a final collection and e-book. This on-line participatory chapter is dedicated to remember those that were embroiled in the economic massacre of the 1980's.
Many accounts of that economic meltdown are inspirational in the face of extreme stress and pressure. Other stories depict those that chose the shock and crises of the situation to further their own personal gain. Some families made it through the carnage in tact, but many did not. Please forward your contact number or attached file depicting a personal story from that time period.
Please check back as stories are added.
Following is the first story submitted so far on the corresponding Tab:
1.) How to Steal a Farm and a House
Please submit comments and related stories regarding the farm and rural financial crises of the 1980's below.