Weaknesses in the 1920's Economy
Reasons why the Economy was unstable
- Created by: Dracupine
- Created on: 19-05-13 15:31
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- 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
- Farm production cost altogether:
- Argentina (beef) & Canada (Wheat) biggest producers
- Construction
- 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 *****, that it had on the whites was that the ***** 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
- Brookings Institute
- 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
- On the margin problem
- 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
- 6 specific things across America
- Fordney McCumber
- International Problems
- Hoover
- Under- Consumption
- Joshua Freeman
- "The Capacity to produce had outrun the capacity to consume"
- Over production & under consumption
- Joshua Freeman
- Declining Industries
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