The Roaring 1920s & Economic Weaknesses

Production & Consumption

100

•This occurred when factories produced more goods than people could buy.

•What is overproduction?

200

This economic problem happened when people did not buy enough goods

•What is underconsumption?

Farmers

100

•This group struggled when crop prices fell in the 1920s.

•Who are farmers?

200

•This caused farmers to earn less despite growing more crops.

•What are falling commodity prices?

Stock Market

100

•Risky investing based on optimism rather than facts.

•What is speculation?

200

•Borrowing money to buy stocks.

•What is buying on margin?

Credit & Spending

100

•Buying goods now and paying later.

•What is consumer credit?

200

•This made the economy appear strong in the 1920s.

•What is increased spending?

Regulation

100

•This was missing in 1920s financial markets.

•What is effective regulation?

200

•This absence allowed risky practices to continue.

•What is government oversight?