Stock market crash
This happened in 1929
What was the stock market crash
People didnt have any money and all the banks were closed
Why was there so much debt
Wealth doubled in these years
What happened in 1920-1929
Mass production
What powered the 1920’s production boom?
The rich
Who accountEd for a third of all wealth
the Fedreal reserve raised interest rates in hope of this.
What was the rapid raise in stock prices
People couldnt withdrawal any money
What happened after the banks closed
People spent money carelessly
Why did people have no money
Even before the crash, what did many businesses have to do?
The poor
Who had no savings at all
The stock market crash
What was the main cause of the decade long economic catastrophe
Decline in spending
What led to a decline in production
The end of World War Two.
What lead to the boom of the 1920’s?
Not enough consumers would purchase the products.
What did overproduction lead to?
Their extravagant lifestyle
What were some members of high society forced to change
to help people buy more shared
Why was margine buying used
what made it difficult for farmers to keep up with their loan payments
What was the decline in farm commodity prices
Income and savings.
What did the wealthy class control much of?
Over-extended enterprises.
Who did a drop in prices hurt?
Wealthy 1%
Between 1920 and 1929 who’s income raised by 75% while the rest of the population rose 9%
In later October in 1929 13 million shares of stocker were traded
What caused 40% of paper values of common stock to be wiped out
People used margin buying to buy more shares they couldn’t afford, they spent money impulsively and irresponsibly, they lived expensively.
Why did people have debts
They were paid lower wages, and unable to save.
What did the lower class deal with?
A result in prices which decimated profits.
What did overproduction result in?
It kept the stock market artificially high, but lead to large market crashes.
How did unequal wealth affect the markets?