1 / 7

The Nation’s Sick Economy

The Nation’s Sick Economy. Economic Troubles. Industries in trouble Railroad, textiles, steel Mining and lumbering Automobile Consumer goods Housing . Farming Agriculture suffered the most Coolidge vetoed the bill enabling price-supports

sanam
Download Presentation

The Nation’s Sick Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Nation’s Sick Economy

  2. Economic Troubles • Industries in trouble • Railroad, textiles, steel • Mining and lumbering • Automobile • Consumer goods • Housing • Farming • Agriculture suffered the most • Coolidge vetoed the bill enabling price-supports • Gov’t buying of surplus crops that they would sell on the world market

  3. Economic Troubles • By the late 1920s, Americans were buying less • Rising prices • Stagnant wages Unbalanced distribution of income • Rich got richer / poor got poorer • The wealthiest 1% of the population rose by 75% / only 9% increase for the majority of Americans • Overbuying on credit

  4. Economic Troubles • Unrestrained buying and selling • The Stock Market • The buying and selling of company stocks • Dow Jones Industrial Average • A measure based on the stock prices of 30 representative large firms • Many people invested in the 1920s but engaged in • Speculation • Buying on the margin

  5. The Stock Market Crashes • Black Tuesday • Stock prices plunged • Shareholders tried to sell out before the prices fell even lower • 16.4 million stocks were sold • Many people who bought stocks on credit found themselves in huge debt • Many people lost their savings

  6. Financial Collapse • Bank and business failures • Banks • After the crash, panic caused people to withdraw their money from the banks • By 1933, 11,000 of the nations 25,000 banks had failed • Because bank accounts weren’t insured, millions of people lost their savings • Businesses • 90,000 businesses went bankrupt • GDP cut in ½ • Millions lost their jobs

  7. Crisis at Home and Abroad • 1930 – Congress passed the Hawley – Smoot Tariff Act • Highest protective tariff in US history • Meant to protect American farmers and manufacturers but backfired • Many countries retaliated by raising their own tariffs • Within a few years, world trade fell by more than 40%

More Related