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5 Great Depression Success Stories

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The news about the economy continues to be glum, which makes you wonder if any industry or business could possibly be doing well in such a crummy financial climate. While it might not be easy, it's certainly possible to succeed in a slumping economy. Just take a look at these entities that faced serious challenges during a much bigger fiasco, the Great Depression, and lived to tell about it.

1. Floyd Bostwick Odlum

Many investors lost everything during the market crash of 1929 because they has mistakenly assumed Wall Street's good times were never going to end. Odlum, a former corporate attorney who had cannily turned $39,000 into a multimillion-dollar fortune by investing in utility companies, didn't like the way he thought the markets were moving, though. He cut bait on stocks in an effort to generate cash before the market crash he thought was coming.


When the crash came, Odlum had millions in cash on hand, an enviable position in a cash-starved market. He began swooping in to buy up failing companies at drastically reduced prices and then consolidating or spinning their assets for more cash. It sounds like a pretty simple model, but it was so effective it made Odlum one of the ten wealthiest men in the country and earned him the title of "possibly the only man in the United States who made a great fortune during the Depression."

2. Movies

The beginning of the Great Depression in late 1929 came at a particularly inopportune time for the film industry, which had recently evolved with the 1927 release of The Jazz Singer, a milestone talkie. Just as the industry seemed to be gaining momentum, unemployment shot up and the sort of disposable income one uses for little luxuries like going to the movies steeply declined. Early in the economic crisis, many moviehouses had to close their doors due to the decreased traffic, and most of the once-profitable studios started turning losses in the 1930s.

Faced with this glum market, the film industry got creative. To give customers maximum bang for their scant bucks, theaters cut ticket prices by 50% or more and started giving patrons two features for the price of one ticket. These double features propped up demand for cheaply made B movies, and smaller studios stayed afloat by banging out these quick products.

Theater owners resorted to even more desperate hucksterism, though. During the Depression it was fairly common for theaters to use giveaways to fill their seats. Promotions like "Dish Night" in which any woman who attended got a free dinner plate, cash door prizes, and silverware giveaways where each trip to see a flick got you closer to having a complete set of flatware helped buoy up attendance. Although box-office takes swooned to $480 million in 1933, they slowly climbed back up to $810 million by 1941, in part due to these disaster-management tricks.

3. Procter and Gamble

The Great Depression was trying for most consumer product companies, but Procter and Gamble came out of the whole ordeal smelling better than it had in 1929. How did the soap giant beat the Depression? Things were tough at first when mainstay grocery customers started cutting their orders and inventories piled up. P&G apparently realized that even in a depression people would need soap, though, so they might as well buy it from Procter and Gamble.

Oxydol.jpgThus, instead of throttling down its advertising efforts to cut costs, the company actively pursued new marketing avenues, including commercial radio broadcasts. One of these tactics involved sponsoring daily radio serials aimed at homemakers, the company's core market. In 1933 P&G debuted its first serial, Oxydol's Own Ma Perkins, and women around the country quickly fell in love with the tales of the kind widow. The program was so successful that P&G started cranking out similar programs to support its other brands, and by 1939, the company was producing 21 of these so-called "soap operas." In 1940 the company started its own production division for soap operas, and in 1950 it made the first ongoing television soap opera, The First Hundred Years.


P&G's share price is currently trading at about $20 below its 52-week high, so maybe it's time for the consumer goods behemoth to go back to what works. Might we suggest YouTube videos involving the antics of adorable babies?

4. Martin Guitars

Like movies, musical instruments would seem to be a vulnerable industry in a down economy, but venerable acoustic guitar maker Martin made it through the Depression using a number of strategies. The company stuck to its principle of not giving high-volume retailers discounts, which maintained its relationship with smaller dealers and cemented the company's image as a square dealer.

Martin also started offering new, less expensive models that went on to enjoy great popularity. The "dreadnought" body style was one of these triumphs; it included a larger, deeper body that provided more volume and bass resonance. Martin introduced its first archtop guitar in 1931, and the company also revolutionized its designs by using 14-fret necks on its guitars. These technical changes, coupled with Martin's dedication to giving its customers high-quality instruments at reasonable prices, helped keep its sales up throughout the Depression.

5. Brewers

The Depression was hard enough for most companies, but the nation's brewers had it especially bad. Sure, money was tight, but brewer's core product, beer, wasn't even legal. During national Prohibition from 1920 to 1933, about half of the country's breweries closed their doors for good, but the rest stuck it out hoping for a repeal. How did these brewers make ends meet during the Depression when they couldn't sell suds to the distressed 25% of workers who didn't have jobs?

yuengling.jpgBy diversifying. And then diversifying some more. Brewers started running dairies, selling meat, and venturing out into other agricultural enterprises. Brewers were also allowed to make "near beer" that had only trace amounts of alcohol, but the Depression killed off consumer demand from 300 million gallons in 1921 to just 86 million gallons in 1932. Breweries also started applying their expertise to non-alcoholic tipples like ginger beer; during the Depression there were upwards of 300 breweries making the spicy soft drink. Frank Yuengling, who headed the brewery of the same name outside of Philadelphia, remained confident that Prohibition was just a phase, and he personally diversified widely, including a foray as a bank president and opening a dance hall.

In the end, waiting out the storm by diversifying (and maybe brewing some illicit beer on the side) turned out to be a sound strategy. According to a 2005 survey of the American brewing industry, eight of the 10 largest brewers in the U.S. are pre-Prohibition brands that survived through the Depression.

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40 Fun Facts About Sesame Street
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Now in its 47th season, Sesame Street is one of television's most iconic programs—and it's not just for kids. We're big fans of the Street, and to prove it, here are some of our favorite Sesame facts from previous stories and our Amazing Fact Generator.

Sesame Workshop

1. Oscar the Grouch used to be orange. Jim Henson decided to make him green before season two.

2. How did Oscar explain the color change? He said he went on vacation to the very damp Swamp Mushy Muddy and turned green overnight.

3. During a 2004 episode, Cookie Monster said that before he started eating cookies, his name was Sid.

4. In 1980, C-3PO and R2-D2 visited Sesame Street. They played games, sang songs, and R2-D2 fell in love with a fire hydrant.

5. Mr. Snuffleupagus has a first name—Aloysius

6. Ralph Nader stopped by in 1988 and sang "a consumer advocate is a person in your neighborhood."

7. Caroll Spinney said he based Oscar's voice on a cab driver from the Bronx who brought him to the audition.

8. In 1970, Ernie reached #16 on the Billboard Hot 100 with the timeless hit "Rubber Duckie."

9. One of Count von Count's lady friends is Countess von Backwards, who's also obsessed with counting but likes to do it backwards.

10. Sesame Street made its Afghanistan debut in 2011 with Baghch-e-Simsim (Sesame Garden). Big Bird, Grover and Elmo are involved.

11. According to Muppet Wiki, Oscar the Grouch and Count von Count were minimized on Baghch-e-Simsim "due to cultural taboos against trash and vampirism."

12. Before Giancarlo Esposito was Breaking Bad's super intense Gus Fring, he played Big Bird's camp counselor Mickey in 1982.

13. Thankfully, those episodes are available on YouTube.

14. How big is Big Bird? 8'2". (Pictured with First Lady Pat Nixon.)

15. In 2002, the South African version (Takalani Sesame) added an HIV-positive Muppet named Kami.

16. Six Republicans on the House Commerce Committee wrote a letter to PBS president Pat Mitchell warning that Kami was not appropriate for American children, and reminded Mitchell that their committee controlled PBS' funding.

17. Sesame Street's resident game show host Guy Smiley was using a pseudonym. His real name was Bernie Liederkrantz.

18. Bert and Ernie have been getting questioned about their sexuality for years. Ernie himself, as performed by Steve Whitmere, has weighed in: “All that stuff about me and Bert? It’s not true. We’re both very happy, but we’re not gay,”

19. A few years later, Bert (as performed by Eric Jacobson) answered the same question by saying, “No, no. In fact, sometimes we are not even friends; he can be a pain in the neck.”

20. In the first season, both Superman and Batman appeared in short cartoons produced by Filmation. In one clip, Batman told Bert and Ernie to stop arguing and take turns choosing what’s on TV.

21. In another segment, Superman battled a giant chimp.

22. Telly was originally "Television Monster," a TV-obsessed Muppet whose eyes whirled around as he watched.

23. According to Sesame Workshop, Elmo is the only non-human to testify before Congress.

24. He lobbied for more funding for music education, so that "when Elmo goes to school, there will be the instruments to play."

25. In the early 1990s, soon after Jim Henson’s passing, a rumor circulated that Ernie would be killed off in order to teach children about death, as they'd done with Mr. Hooper.

26. According to Snopes, the rumor may have spread thanks to New Hampshire college student, Michael Tabor, who convinced his graduating class to wear “Save Ernie” beanies and sign a petition to persuade Sesame Workshop to let Ernie live.

27. By the time Tabor was corrected, the newspapers had already picked up the story.

28. Sesame Street’s Executive Producer Carol-Lynn Parente joined Sesame Workshop as a production assistant and has worked her way to the top.

29. Originally, Count von Count was more sinister. He could hypnotize and stun people.

30. According to Sesame Workshop, all Sesame Street's main Muppets have four fingers except Cookie Monster, who has five.

31. The episode with Mr. Hooper's funeral aired on Thanksgiving Day in 1983. That date was chosen because families were more likely to be together at that time, in case kids had questions or needed emotional support.

32. Mr. Hooper’s first name was Harold.

33. Big Bird sang "Bein' Green" at Jim Henson's memorial service.

34. As Chris Higgins put it, the performance was "devastating."

35. Oscar's Israeli counterpart is Moishe Oofnik, whose last name means “grouch” in Hebrew.

36. Nigeria's version of Cookie Monster eats yams. His catchphrase: "ME WANT YAM!"

37. Sesame's Roosevelt Franklin ran a school, where he spoke in scat and taught about Africa. Some parents hated him, so in 1975 he got the boot, only to inspire Gob Bluth’s racist puppet Franklin on Arrested Development 28 years later.

38. Our good friend and contributor Eddie Deezen was the voice of Donnie Dodo in the 1985 classic Follow That Bird.

39. Cookie Monster evolved from The Wheel-Stealer—a snack-pilfering puppet Jim Henson created to promote Wheels, Crowns and Flutes in the 1960s.

40. This puppet later was seen eating a computer in an IBM training film and on The Ed Sullivan Show.

Thanks to Stacy Conradt, Joe Hennes, Drew Toal, and Chris Higgins for their previous Sesame coverage!

An earlier version of this article appeared in 2012.

How Apple's '1984' Super Bowl Ad Was Almost Canceled

More than 30 years ago, Apple defined the Super Bowl commercial as a cultural phenomenon. Prior to Super Bowl XVIII, nobody watched the game "just for the commercials"—but one epic TV spot, directed by sci-fi legend Ridley Scott, changed all that. Read on for the inside story of the commercial that rocked the world of advertising, even though Apple's Board of Directors didn't want to run it at all.

THE AD

If you haven't seen it, here's a fuzzy YouTube version:

"WHY 1984 WON'T BE LIKE 1984"

The tagline "Why 1984 Won't Be Like '1984'" references George Orwell's 1949 novel 1984, which envisioned a dystopian future, controlled by a televised "Big Brother." The tagline was written by Brent Thomas and Steve Hayden of the ad firm Chiat\Day in 1982, and the pair tried to sell it to various companies (including Apple, for the Apple II computer) but were turned down repeatedly. When Steve Jobs heard the pitch in 1983, he was sold—he saw the Macintosh as a "revolutionary" product, and wanted advertising to match. Jobs saw IBM as Big Brother, and wanted to position Apple as the world's last chance to escape IBM's domination of the personal computer industry. The Mac was scheduled to launch in late January of 1984, a week after the Super Bowl. IBM already held the nickname "Big Blue," so the parallels, at least to Jobs, were too delicious to miss.

Thomas and Hayden wrote up the story of the ad: we see a world of mind-controlled, shuffling men all in gray, staring at a video screen showing the face of Big Brother droning on about "information purification directives." A lone woman clad in vibrant red shorts and a white tank-top (bearing a Mac logo) runs from riot police, dashing up an aisle towards Big Brother. Just before being snatched by the police, she flings a sledgehammer at Big Brother's screen, smashing him just after he intones "We shall prevail!" Big Brother's destruction frees the minds of the throng, who quite literally see the light, flooding their faces now that the screen is gone. A mere eight seconds before the one-minute ad concludes, a narrator briefly mentions the word "Macintosh," in a restatement of that original tagline: "On January 24th, Apple Computer will introduce Macintosh. And you'll see why 1984 won't be like '1984.'" An Apple logo is shown, and then we're out—back to the game.

In 1983, in a presentation about the Mac, Jobs introduced the ad to a cheering audience of Apple employees:

"... It is now 1984. It appears IBM wants it all. Apple is perceived to be the only hope to offer IBM a run for its money. Dealers, initially welcoming IBM with open arms, now fear an IBM-dominated and -controlled future. They are increasingly turning back to Apple as the only force that can ensure their future freedom. IBM wants it all and is aiming its guns on its last obstacle to industry control: Apple. Will Big Blue dominate the entire computer industry? The entire information age? Was George Orwell right about 1984?"

After seeing the ad for the first time, the Apple audience totally freaked out (jump to about the 5-minute mark to witness the riotous cheering).

SKINHEADS, A DISCUS THROWER, AND A SCI-FI DIRECTOR

Chiat\Day hired Ridley Scott, whose 1982 sci-fi film Blade Runner had the dystopian tone they were looking for (and Alien wasn't so bad either). Scott filmed the ad in London, using actual skinheads playing the mute bald men—they were paid $125 a day to sit and stare at Big Brother; those who still had hair were paid to shave their heads for the shoot. Anya Major, a discus thrower and actress, was cast as the woman with the sledgehammer largely because she was actually capable of wielding the thing.

Mac programmer Andy Hertzfeld wrote an Apple II program "to flash impressive looking numbers and graphs on [Big Brother's] screen," but it's unclear whether his program was used for the final film. The ad cost a shocking $900,000 to film, plus Apple booked two premium slots during the Super Bowl to air it—carrying an airtime cost of more than $1 million.

WHAT EXECUTIVES AT APPLE THOUGHT

Although Jobs and his marketing team (plus the assembled throng at his 1983 internal presentation) loved the ad, Apple's Board of Directors hated it. After seeing the ad for the first time, board member Mike Markkula suggested that Chiat\Day be fired, and the remainder of the board were similarly unimpressed. Then-CEO John Sculley recalled the reaction after the ad was screened for the group: "The others just looked at each other, dazed expressions on their faces ... Most of them felt it was the worst commercial they had ever seen. Not a single outside board member liked it." Sculley instructed Chiat\Day to sell off the Super Bowl airtime they had purchased, but Chiat\Day principal Jay Chiat quietly resisted. Chiat had purchased two slots—a 60-second slot in the third quarter to show the full ad, plus a 30-second slot later on to repeat an edited-down version. Chiat sold only the 30-second slot and claimed it was too late to sell the longer one. By disobeying his client's instructions, Chiat cemented Apple's place in advertising history.

When Apple co-founder Steve Wozniak heard that the ad was in trouble, he offered to pony up half the airtime costs himself, saying, "I asked how much it was going to cost, and [Steve Jobs] told me $800,000. I said, 'Well, I'll pay half of it if you will.' I figured it was a problem with the company justifying the expenditure. I thought an ad that was so great a piece of science fiction should have its chance to be seen."

But Woz didn't have to shell out the money; the executive team finally decided to run a 100-day advertising extravaganza for the Mac's launch, starting with the Super Bowl ad—after all, they had already paid to shoot it and were stuck with the airtime.

1984 - Big Brother

WHAT EVERYBODY ELSE THOUGHT

When the ad aired, controversy erupted—viewers either loved or hated the ad, and it spurred a wave of media coverage that involved news shows replaying the ad as part of covering it, leading to estimates of an additional $5 million in "free" airtime for the ad. All three national networks, plus countless local markets, ran news stories about the ad. "1984" become a cultural event, and served as a blueprint for future Apple product launches. The marketing logic was brilliantly simple: create an ad campaign that sparked controversy (for example, by insinuating that IBM was like Big Brother), and the media will cover your launch for free, amplifying the message.

The full ad famously ran once during the Super Bowl XVIII (on January 22, 1984), but it also ran the month prior—on December 31, 1983, TV station operator Tom Frank ran the ad on KMVT at the last possible time slot before midnight, in order to qualify for 1983's advertising awards.* (Any awards the ad won would mean more media coverage.) Apple paid to screen the ad in movie theaters before movie trailers, further heightening anticipation for the Mac launch. In addition to all that, the 30-second version was aired across the country after its debut on the Super Bowl.

Chiat\Day adman Steve Hayden recalled: "We ran a 30- second version of '1984' in the top 10 U.S. markets, plus, in an admittedly childish move, in an 11th market—Boca Raton, Florida, headquarters for IBM's PC division." Mac team member Andy Hertzfeld ended his remembrance of the ad by saying:

"A week after the Macintosh launch, Apple held its January board meeting. The Macintosh executive staff was invited to attend, not knowing what to expect. When the Mac people entered the room, everyone on the board rose and gave them a standing ovation, acknowledging that they were wrong about the commercial and congratulating the team for pulling off a fantastic launch.

Chiat\Day wanted the commercial to qualify for upcoming advertising awards, so they ran it once at 1 AM at a small television station in Twin Falls, Idaho, KMVT, on December 15, 1983 [incorrect; see below for an update on this -ed]. And sure enough it won just about every possible award, including best commercial of the decade. Twenty years later it's considered one of the most memorable television commercials ever made."

THE AWFUL 1985 FOLLOW-UP

A year later, Apple again employed Chiat\Day to make a blockbuster ad for their Macintosh Office product line, which was basically a file server, networking gear, and a laser printer. Directed by Ridley Scott's brother Tony, the new ad was called "Lemmings," and featured blindfolded businesspeople whistling an out-of-tune version of Snow White's "Heigh-Ho" as they followed each other off a cliff (referencing the myth of lemming suicide).

Jobs and Sculley didn't like the ad, but Chiat\Day convinced them to run it, pointing out that the board hadn't liked the last ad either. But unlike the rousing, empowering message of the "1984" ad, "Lemmings" directly insulted business customers who had already bought IBM computers. It was also weirdly boring—when it was aired at the Super Bowl (with Jobs and Sculley in attendance), nobody really reacted. The ad was a flop, and Apple even proposed running a printed apology in The Wall Street Journal. Jay Chiat shot back, saying that if Apple apologized, Chiat would buy an ad on the next page, apologizing for the apology. It was a mess:

20-YEAR ANNIVERSARY

In 2004, the ad was updated for the launch of the iPod. The only change was that the woman with the hammer was now listening to an iPod, which remained clipped to her belt as she ran. You can watch that version too:

FURTHER READING

Chiat\Day adman Lee Clow gave an interview about the ad, covering some of this material.

Check out Mac team member Andy Hertzfeld's excellent first-person account of the ad. A similar account (but with more from Jobs's point of view) can found in the Steve Jobs biography, and an even more in-depth account is in The Mac Bathroom Reader. The Mac Bathroom Reader is out of print; you can read an excerpt online, including QuickTime movies of the two versions of the ad, plus a behind-the-scenes video. Finally, you might enjoy this 2004 USA Today article about the ad, pointing out that ads for other computers (including Atari, Radio Shack, and IBM's new PCjr) also ran during that Super Bowl.

* = A Note on the Airing in 1983

Update: Thanks to Tom Frank for writing in to correct my earlier mis-statement about the first air date of this commercial. As you can see in his comment below, Hertzfeld's comments above (and the dates cited in other accounts I've seen) are incorrect. Stay tuned for an upcoming interview with Frank, in which we discuss what it was like running both "1984" and "Lemmings" before they were on the Super Bowl!

Update 2: You can read the story behind this post in Chris's book The Blogger Abides.

This post originally appeared in 2012.

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