Colorado's Fiscal Choices During the Great Depression

Abstract

The Great Depression was a tough time of economic downturn throughout the United States. Each state responded to this time period differently. Throughout this thesis, I will examine the fiscal choices of the state of Colorado specifically from 1929 to 1940. I will provide a comprehensive overview of the Colorado state government's choices in their attempt to revitalize the state's economy and provide relief to the people of Colorado throughout the Great Depression. I will analyze the taxes and spending choices outlined in state record and session laws, focusing specifically on the key industries of Colorado. The paper uses two major tools to explain these phenomena. The first is a series of narratives, which explain the social and political climate in Colorado from 1929-1940 throughout changes in leadership. The second is a quantitative analysis. I will identify key variables and then explore their causal relationship with Colorado's per capita state tax revenue. I will then compare the revenue and expenditures of Colorado's bordering states for comparison and run regressions to identify nationwide trends.