SECTION 4
US ECONOMY GREW RAPIDLY IN THE 1920s HIGH PRODUCTION LARGE COMPANY PROFITS = STOCK PRICES ROSE AS A RESULT WHAT IS A STOCK?????????? FROM STOCK SALES INCREASED 400% MANY PEOPLE STARTED BORROWING MONEY TO PURCHASE STOCK
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
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 MANY INDUSTRIES BECAME CLOSED SHOPS UNION MEMBERSHIP WAS REQUIRED TO WORK THERE
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)
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
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
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