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Signs of Economic Trouble
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1928- Economy appears healthy
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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
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4. High tariffs (Smoot-Hawley) on imports led to high prices
5. World Wide depression- Versailles Treaty
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6. Stock speculation- high risk stocks hoping to make big $$$
7. Decrease in demand (warehouses full of merchandise)
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Squatter in abandoned warehouse
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8. Farmers- Had struggled throughout the decade
Debts for purchases of machinery No longer demand for crops from Europe No govt aid
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Texas farm
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