the nation’s sick economy
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The Nation’s Sick Economy. Section 22-1 pp. 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 - PowerPoint PPT PresentationTRANSCRIPT
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