14.1 Economic Troubles on the Horizon INDUSTRIES IN TROUBLE Though many Americans are wealthy, many couldn’t earn enough for a decent living Many things that used to prosper during wartime are no longer in demand o Mining o Lumbering o Railroads Even the boom industries of 1920—automobiles, construction and consumer goods— weakened Decline in housing starts, when housing falls—so do jobs o Including furniture manufacturing and lumbering FARMERS NEED A LIFT During WWI, prices rose and demand for crops; wheat and corn soared Farmers planted more, they took out loans for land & equipment’s Demand fell after the war—crop prices declined by 40% Farmers tried to boost production in hopes of selling more crops—but it just decreased more 1919-1920; income went from $10 billion to $4 billion Many went into debt and had a lot of trouble paying off their debt o Many lost their farms o Due to all the loans many banks went bankrupt o Auctions were held to recoup some bank losses Price-supports: key products like wheat, corn, cotton and tobacco The gov. would buy the crops at the prices and sell them on the world market o Prez. Coolidge vetoed the bill twice—how Farmers never earned money and they couldn’t do anything about it CONSUMERS HAVE LESS MONEY TO SPEND Americans began to buy less because,
o Rising prices o Unbalanced income LIVING ON CREDIT
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- Fall '19
- Great Depression, Wall Street Crash of 1929