Weaknesses in the 1920's Economy

Reasons why the Economy was unstable

HideShow resource information
  • Created by: Dracupine
  • Created on: 19-05-13 15:31
View mindmap
  • Weaknesses in the 1920's Economy
    • Declining Industries
      • Construction
        • Florida Land Boom
        • Sky scrapers
      • Coal Mining
      • Textiles
      • Farming
        • Europe can produce own food (agriculture restored)
        • Tariffs
        • Over Producing
          • Farm production cost altogether:
            • 1919- $10 bill
            • 1929- $4 bill
        • Argentina (beef) & Canada (Wheat) biggest producers
    • Unequal Society
      • Brookings Institute
        • 70 million below poverty line 1900-  1930
      • Large gap between rich & poor
        • top 0.5-1% = bottom 42%
      • George Shuyler
        • African Americans worst off
        • "The reason why the depression didn't have the impact on the negro, that it had on the whites was that the negro had been in depression the whole time."
        • Harlem a 'black part of NY 42% higher death toll than white NY
        • 1930- Share croppers
      • Exacerbated
        • tax  cuts on the rich
    • The Banking System
      • On the margin problem
        • were not careful
      • Federal Reserve Board
        • ran banks in an appropriate way (loans...)
      • Banks lent too much money out, so had no money to keep them afloat
    • Government Policies
      • Fordney McCumber
        • Tariffs (good  internally, not  externally)
      • McNarry haughten Bill 1926
        • 6 specific things across America
          • Hog
          • corn
        • 13 million acres of land no longer used
        • Vetoed by Coolidge
        • Accepted by Congress
        • 6 million migrated from countryside to find work
        • Anything farmers couldn't sell, Gov. bought for good price
    • International Problems
      • Hoover
    • Under- Consumption
      • Joshua Freeman
        • "The Capacity to produce had outrun the capacity to consume"
      • Over production & under consumption

Comments

No comments have yet been made

Similar History resources:

See all History resources »See all resources »