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7 Cards in this Set
- Front
- Back
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buying on the margin
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stocks drop-investors cant pay back loans
banks dont have money-bank runs=people panic and tak out their money banks close- people lose life savings |
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overproduction of goods
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Products pile up in warehouses-Consumer demand drops as people go further into debt
Companies make less profit-Unemployment grows as companies stop production |
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consumer debt
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people buy products on cosumer brand- consmers go further into debt as they buy more stuff
companies depend on installment purposes- consumer demand drops |
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trade difficulty
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american puts taxes on exports- eropeans finace american products because of taxes
american companes sell less and profits drop- unemployment grows |
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stock crash of 1929
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speculationi is high; people are buying and selling stock to make a quick profit- stocks are overvalued (not worth the price)
stock prices start to drop-panic selling on wall st begins stock market crashes (black days)-many people and companies lose massive wealth quickly |
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farming difficulties
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american farmers produce and sell-new technology and machines help farmers yield
market demand drops after WW1is over;prices drop- American farmers can’t pay back loans to banks because of low market prices Banks foreclose on loans; farmers lose their farms-Droughts and Dust Bowl reek further havoc on farmers in the 1930’s |
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Wealth inequality
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Top 1 % of American earn 25 %
of the economy-The middle class and lower class wages don’t rise Fewer products are bought by the masses of people as debt piles up-Companies aren’t as profitable; Unemployment grows |
