THE U.S. ECONOMYSECTION 4

PROSPERITY AND GROWTH

US ECONOMY GREW RAPIDLY IN THE 1920s

HIGH PRODUCTION LARGE COMPANY PROFITS = STOCK PRICES ROSE AS A RESULT

WHAT IS A STOCK?????????? FROM 1923-1928 STOCK SALES

INCREASED 400% MANY PEOPLE STARTED BORROWING

MONEY TO PURCHASE STOCK

PROSPERITY AND GROWTH

STOCK PRICES KEPT RISING VERY FEW BECAME RICH FROM THE

STOCK MARKET MOST SUCCESSFUL PEOPLE STARTED

THEIR OWN BUSINESSES HENRY FORD J.C. PENNEY OTHER INVENTORS OF PRODUCTS

PROBLEMS FOR UNIONS AND INDUSTRIES

SKILLED WORKERS WERE MAKING GOOD WAGES BUT UNSKILLED AND SERVICE INDUSTRY WORKERS WERE STILL UNDER-PAID

UNION MEMBERSHIP DECLINED IN THE 1920s BECAUSE OF THE STRIKES FROM 1919-1920

MANY INDUSTRIES BECAME CLOSED SHOPS UNION MEMBERSHIP WAS REQUIRED TO WORK

THERE

PROBLEMS FOR UNIONS AND INDUSTRIES

AMERICAN PLAN BUSINESSES WANTED OPEN SHOPS▪ UNION MEMBERSHIP WAS OPTIONAL OR EVEN

FORBIDDEN UNIONS FOUGHT THIS PLAN ECONOMICALLY DEPRESSED

INDUSTRIES AT THIS TIME INCLUDED COAL LUMBER TEXTILES (CLOTH)

HARD TIMES FOR FARMERS

DURING THE WAR YEARS, FARMERS INCREASED PRODUCTION BOUGHT MORE LAND ON CREDIT BOUGHT NEW EQUIPMENT ON CREDIT

WAR ENDED AND FARMERS KEPT PRODUCING = DECREASE IN FOOD PRICES

FARMERS NOW COULD NOT PAY THEIR DEBTS

HARD TIMES FOR FARMERS

CORN PRICES WENT FROM $1.22 / BUSHELL IN 1919 TO $.41 / BUSHELL IN 1920

FARMERS ELECTED INTO OFFICE THE FARM BLOC PRO-FARM MEMBERS OF THE HOUSE AND SENATE

PASSED THE FORDNEY-MCCUMBER TARIFF ACT DESIGNED TO RAISE THE TARIFF ON IMPORTED

FARM PRODUCTS, SO MORE DOMESTIC PRODUCTS COULD BE SOLD IN AMERICA

HARD TIMES FOR FARMERS

THIS ACT HOWEVER CAUSED THE PRICE OF SOME GOODS IN AMERICA TO INCREASE WHICH HURT EVERYONE, ESPECIALLY

THE FARMERS THE TIMES RESULTED IN LARGE

FARMS TO BE ABLE TO MAKE ENDS MEET, BUT THE SMALLER FARM WAS NOT ABLE TO PAY ITS BILLS