“The Great Transformation” and Suicide: Local and Long-Lasting Effects of 1930 Bank Suspensions

Depression-era bank suspensions and failures are conceptualized as products of the first part of what Polanyi (1994) called “The Great Transformation,” which involved an imbalanced institutional arrangement in which the economy dominated other institutions. Relying on Durkheim (1897/1951) and Merton (1938, 1968), it is argued that these banking problems accentuated the type of chronic anomie that Durkheim theorized would create normative deregulation and elevated suicide rates over the long-term. Results from county-level analyses are supportive as the 1930 bank suspension rate is positively related to the 2000 suicide rate, controlling for contemporary and historical factors. The mediating roles of integration and chronic anomie are considered, with the latter measured using data from the geocoded General Social Survey.