The Economy of the 1920s Boom or Bust?. Golden 20s  Gross National Product up by 40%  Corporations grew bigger and concluded mergers  Generally prosperous.

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Presentation transcript:

The Economy of the 1920s Boom or Bust?

Golden 20s  Gross National Product up by 40%  Corporations grew bigger and concluded mergers  Generally prosperous time period  Solid relationship between government and businesses

Automobile Boom  Pervasive effect on all aspects of American Life  Prices low enough for many to buy  Assembly line and high wages for workers  Ripple effect: –Steel, Rubber, Glass, Gas, Highways, motels –Growth of suburbs

Farming/Agriculture  Weak spot of the era  WWI: Gov’t told farmers to produce –Borrowed money to increase production –During war: Profits were high –After war: Prices dropped but huge debts remained  No gov’t help – large farm surplus  Mortgages become foreclosed  McNary-Haugen Bill: attempt to increase prices of farm products (Vetoed by Coolidge)  Depression hits farmers first

Stock Market Prices, 1921–32 Consumer Debt, 1920–31

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