1 / 10

Boom and Bust

Boom and Bust . The Nation’s Sick Economy. Economic Troubles on the Horizon. Key industries like railroads, textiles, steel barely make profit. Mining, lumbering expanded during war; no longer in ____________. _________ industries- automobiles, construction, consumer goods- now ________.

davina
Download Presentation

Boom and Bust

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. Boom and Bust The Nation’s Sick Economy

  2. Economic Troubles on the Horizon • Key industries like railroads, textiles, steel barely make profit. • Mining, lumbering expanded during war; no longer in ____________. • _________ industries- automobiles, construction, consumer goods- now ________. • Housing starts decline.

  3. Farmers Need a Lift • International demand for U.S. grain declines after war • Prices drop by ________ or more. • Farmers boost ___________ to sell __________; prices ___________ further • Farm income declines; farmers _________ on loans; rural banks ____________. • ___________- government buys surplus crops, guarantees prices • Coolidge ___________- price support bill • People buy less due to rising __________, stagnant ______, credit ___________.

  4. Living on Credit • Many people buy goods on credit (buy _____, pay ______) • Businesses give easy credit; consumers pile up large _________. • Consumers have trouble paying off debt, cut back on ____________. • Uneven distribution of Income: • In the 1920’s rich get richer, poor get poorer • ________ of families earn less than minimum for decent standard of living. • Most cannot afford flood of products factories produce.

  5. Hoover takes the nation • Election of 1928 • Democrat ____________ four times governor of New York. • Republican _______________ gets overwhelming victory.

  6. Hoover Takes the Nation • _________ Industrial Average tracks state of stock market • 1920’s stock prices rise steadily; people rush to buy _______,___________. • Many engage in _______________, buy on chance of a quick profit. • Buying on ___________- pay small percent of price _________rest

  7. Black Tuesday • September 1929 stock prices _____ then ______; investors begin ________. • October 29 or __________________, market, nation’s confidence __________. • People who bought on _________ left with huge debts • Others lose most of their _________.

  8. Financial Collapse • Bank and Business Failures • _____________- economy plummets, unemployment skyrokets • Lasts from 1929-1940 • After crash, people panic, _________ money from banks • Banks that invested in stocks ________, people lose half their ___________. • 1929-1932, _______________ cut nearly in half. • 90,000 business go bankrupt • 1933, ______ of workers jobless; those with jobs get cuts in hours, pay.

  9. Worldwide Shock Waves • Great Depression limits US ability to __________ European goods • ____________________________ Act sets highest protective tariff ever in U. S. • Other countries cannot earn American currency to buy U.S. goods • _________________ drops; unemployment soars around the world

  10. Causes of Great Depression • Factors leading to the Great Depression • Tariffs, __________, farm problems, __________, income disparity • Federal government keeps interest rates______ encourages borrowing

More Related