Signs of Economic Trouble

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Presentation transcript:

Signs of Economic Trouble

1928- Economy appears healthy

Danger signs 1. 1920s- too much spending 2. Uneven prosperity (top 1% saw 63% increase in wealth in 1920s/ bottom 93% saw 4% decrease in wealth) 200 companies controlled 49% of economics 3. Higher and higher interest rates People purchased things they could not afford

4. High tariffs (Smoot-Hawley) on imports led to high prices 5. World Wide depression- Versailles Treaty

6. Stock speculation- high risk stocks hoping to make big $$$ 7. Decrease in demand (warehouses full of merchandise)

Squatter in abandoned warehouse

8. Farmers- Had struggled throughout the decade Debts for purchases of machinery No longer demand for crops from Europe No govt aid

Texas farm