Baseball Cards and the Recession of 1937

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Posted By: Chris Counts

As a big fan of baseball cards from the early gum era (1933 to 1941), I've always been curious why there are so many sets from 1933 to 1936, and then in 1937 and 1938, there is virtually nothing. By 1939, thanks to the folks at Gum, Inc, the production of cards was back in full swing until the interuption of WWII.

Just recently, I came across a Wikipedia article, "The Recession of 1937." Here are some of the highlights ...

Background:

"By 1936, all the main economic indicators had regained the levels of the late 1920s, except for unemployment, which remained high. In 1937, the American economy took an unexpected downturn, lasting through most of 1938. Production declined sharply, as did profits and employment. Unemployment jumped from 14.3% in 1937 to 19.0% in 1938. In two months, unemployment rose from 5 million to over 9 million, reaching almost 12 million in early 1938. Manufacturing output fell off by 40% from the 1937 peak; it was back to 1934 levels ..."

Response:

"The Roosevelt Administration reacted by launching a rhetorical campaign against monopoly power, which was cast as the cause of the depression, and appointing Thurman Arnold to act; Arnold was not effective, and the attack ended once World War II began and corporate energies had to be directed to winning the war ..."

Recovery:

It began to get better in mid-1938, and every month it was better. However, employment did not regain the 1937 level until the war boom began in late 1940. Productivity steadily increased, and output in 1940 as well above the levels of both 1929 and 1937. Personal income in 1939 was almost at 1919 levels in aggregate, but not per capita ...

I always assumed the Great Depression peaked early, and was followed by a slow but steady recovery, but that clearly wasn't the case. Anyway, it seems logical to me that this profound economic downturn must have had some effect on the production and popularity of baseball cards ...