1. Ch.22 Sect.1: The Nation’s Sick Economy

2. Industries in Trouble Many couldn’t earn a decent living
Railroads, textiles, steel…
Why did rails struggle?
Mining/lumbering
New forms of energy
Housing starts…

5. Farmers Need a Lift Agriculture suffered most WWI Demand fell 
Production boosted, good idea?
Foreclosure
Price-supports
What did govt. do?
Coolidge

6. Less $ to Spend/Credit 1920s, Americans buying less Why?
Production expanded faster than wages
Credit—
Installment plan
Consumer debt

7. Uneven Distribution of Income
Rich got richer, poor got poorer
Income of Wealthiest 1% rose
70% earned less than $2500 year
New clothes once a year
All the new products came out and many could not buy them!

8. Election of 1928 Hoover vs. Smith Hoover was sect. of commerce
Smith career politician
What did Hoover count on?
Who won?

10. Dreams of Riches in the Stock Market
1929 economists began to warn people…
Stock market
Dow Jones Industrial Average
Through 1920s stock prices rose
“bull market”
How many owned stock?
Speculation—
Buying on margin—
What if value of stock declined?

11. Stock Market Crashes Sept. 1929 prices peaked and fell
October 1929, market plunged
Black Tuesday—
16.4 million shares dumped
What about those that bought on credit?
Savings accounts?
$30 billion lost
Cartoons

12. Financial Collapse Great Depression— People panicked and…
1929, 600 banks closed
1933, 11,000 failed
Savings?
90,000 businesses bankrupt
Millions jobless
25% unemployed 1933
Did everyone lose money?
The Poorman’s Meal

13. Worldwide Shock Waves Most of Europe suffered throughout 1920s Germany
Americans couldn’t sell products abroad
Hawley-Smoot Tariff Act=Highest ever
Did it work?
Causes pg. 677 (KNOW THESE!!!!!!!!!!!!!!!!!!!)