Boom and Bust

1
Boom and Bust

• The Nations 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 1920s 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
• 1920s 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,
  nations 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