1. SECTION 4

2.  US ECONOMY GREW RAPIDLY IN THE 1920s  HIGH PRODUCTION LARGE COMPANY PROFITS = STOCK PRICES ROSE AS A RESULT  WHAT IS A STOCK??????????  FROM 1923-1928 STOCK SALES INCREASED 400%  MANY PEOPLE STARTED BORROWING MONEY TO PURCHASE STOCK

3.  STOCK PRICES KEPT RISING  VERY FEW BECAME RICH FROM THE STOCK MARKET  MOST SUCCESSFUL PEOPLE STARTED THEIR OWN BUSINESSES  HENRY FORD  J.C. PENNEY  OTHER INVENTORS OF PRODUCTS

4.  SKILLED WORKERS WERE MAKING GOOD WAGES BUT UNSKILLED AND SERVICE INDUSTRY WORKERS WERE STILL UNDER- PAID  UNION MEMBERSHIP DECLINED IN THE 1920s BECAUSE OF THE STRIKES FROM 1919-1920  MANY INDUSTRIES BECAME CLOSED SHOPS  UNION MEMBERSHIP WAS REQUIRED TO WORK THERE

5.  AMERICAN PLAN  BUSINESSES WANTED OPEN SHOPS ▪ UNION MEMBERSHIP WAS OPTIONAL OR EVEN FORBIDDEN  UNIONS FOUGHT THIS PLAN  ECONOMICALLY DEPRESSED INDUSTRIES AT THIS TIME INCLUDED  COAL  LUMBER  TEXTILES (CLOTH)

6.  DURING THE WAR YEARS, FARMERS INCREASED PRODUCTION  BOUGHT MORE LAND ON CREDIT  BOUGHT NEW EQUIPMENT ON CREDIT  WAR ENDED AND FARMERS KEPT PRODUCING = DECREASE IN FOOD PRICES  FARMERS NOW COULD NOT PAY THEIR DEBTS

7.  CORN PRICES WENT FROM $1.22 / BUSHELL IN 1919 TO $.41 / BUSHELL IN 1920  FARMERS ELECTED INTO OFFICE THE FARM BLOC  PRO-FARM MEMBERS OF THE HOUSE AND SENATE  PASSED THE FORDNEY-MCCUMBER TARIFF ACT  DESIGNED TO RAISE THE TARIFF ON IMPORTED FARM PRODUCTS, SO MORE DOMESTIC PRODUCTS COULD BE SOLD IN AMERICA

8.  THIS ACT HOWEVER CAUSED THE PRICE OF SOME GOODS IN AMERICA TO INCREASE  WHICH HURT EVERYONE, ESPECIALLY THE FARMERS  THE TIMES RESULTED IN LARGE FARMS TO BE ABLE TO MAKE ENDS MEET, BUT THE SMALLER FARM WAS NOT ABLE TO PAY ITS BILLS