USA 1920 part four why did stock exchange collapse 1929
the government did not interfere in the economy or impose high taxes on buisnessmen this allowed more
of the profits to be re-invested into the buisness
what were the strengths of the US economy in the 1920's
new industries were doing well, especially cars and electrical goods
spin-off industries from the manufacture of cars prospered
the stock market was making profits
the government did not interfere in the economy or impose high taxes on buisnessmen
the stock market was making profits . as people invested in companies this provided
the companies with more money to build up their buisness even further
why did the USA fall into depression in 1929
because there were underlying preoblems throught the 1920's , which meant that prosperity would come to an end
these problems includde unequal distribution of wealth , overproduction , republican policies , tariff controls and the collapse of finacial markets
as we have seen , despite the economic boom of the 1920's , there was a great deal of
poverty in the USA . The majority of the population was poor . Older industries did not share in this prosperity , so miners and textile workers suffered
farmers and sharecroppers were suffering . Even when congress passed a bill by which -------------------------------------- , president ....... twice voted it on th grounds that it may encourage farmers to increase the production and so make the problem worst
the government would have bought up farmers' surplus crops
by ...... , millions of farmers and farm labourers were out of work
wages did not rise in proportion to ........
average profits rose .....% but wages only rose ......% , so this led to great ....... .
....... of personal income was earnt by the top ......% of wealthy Americans .
it was generally believed that the industrial boom would gradually filter through the
poor and improve their position . At the same time however , prices were kept high by agreemenys between buisnessmen