the nation’s sick economy
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The Nation’s Sick Economy
Section 22-1pp. 670-677
Preview Questions
• Why was the nation’s economy sick in the late 1920’s?
• What was Black Tuesday?
• How did the stock market crash affect businesses?
Trouble on the Horizon
• Farming – Overproduction Lower prices– Default on mortgages and lose land – Price supports vetoed
• Overproduction of Goods
Trouble on the Horizon
• Credit – Accumulated debt and couldn’t pay it
off
• Uneven Distribution of Income– People lack money to buy consumer
goods
Hoover Takes the Nation
• Hoover (R) elected in 1928
• Problems in Stock Market– Speculation – Buying on Margin – Inflated Stock Prices
Stock Market Crashes
• Black Tuesday– October 29, 1929– Sharp decline in
prices: “Crash” – $30 billion lost by
November
Financial Collapse
• Great Depression – Period of bad economic times 1929-
1940– Banks and businesses close – Spread worldwide
Financial Collapse
• Hawley-Smoot Tariff – Attempt to stimulate U.S. economy – Leads to decrease in foreign trade
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