1. The Economy of the 1920 ’ s Chapter 22 Section 4

2. Key Terms Define: installment buying, bull market, buying on margin Define: installment buying, bull market, buying on margin

3. Industrial Growth As more good came in, prices dropped As more good came in, prices dropped Installment buying was offered on high price items (ex. Cars) Installment buying was offered on high price items (ex. Cars) Advertising: radio commercials, magazines Advertising: radio commercials, magazines Vacuum cleaners, toasters, washing machines, and refrigerators Vacuum cleaners, toasters, washing machines, and refrigerators Reckless spending Reckless spending

4. A Booming Stock Market More people began to invest in the Stock Market making it a bull market More people began to invest in the Stock Market making it a bull market People began to buy on margin People began to buy on margin Americans grew wealthy in the stock market but investors began to place warnings which Americans ignored Americans grew wealthy in the stock market but investors began to place warnings which Americans ignored

5. Signs of Trouble Farmers Farmers *Many farmers lived in poverty *Farmers grew more than Americans wanted (it was ok in the past because they sold products abroad) *High debt Workers Workers *High unemployment (assembly line)

6. Election of 1928 Republican Herbert Hoover v Democrat Alfred E. Smith Republican Herbert Hoover v Democrat Alfred E. Smith Smith: 1 st Catholic to run and immigrants supported him Smith: 1 st Catholic to run and immigrants supported him Hoover: supported by rural residents and Protestants, Republicans Hoover: supported by rural residents and Protestants, Republicans Hoover wins Hoover wins HW: Documents with questions handout Chapter Review