long term problems behind the crash

industrial production slowed ‘…’ months before the crash

slowed 2 months before the crash (falling consumer demand)

construction boom came to an end in

1928 - construction boom ends (falling consumer demand)

unequal distribution of wealth

almost 505 of Americans had an annual income of less than $2,000, the minimum to survive

less demand for consumer goods led to

overproduction - and America could not sell its surplus produce due to high tariffs abroad, caused by its own scheme of protectionist tariffs

value of farmland fell by

30%

agriculture was plagued by overproduction

• post war falling demand = falling price of wheat

• prohibition cut demand for grain and alcohol manufacture

• no foreign markets to absorb - tariffs + Europe could supply itself now

• mechanisation and advancement contributed to overproduction

Agricultural Credits Act

1923 - made low interest loans available for farmers (potential counter in an essay)

BUT huge farm loan surpluses continued to exist

% of farmers living in poverty by 1928

50% - South and West did not benefit from the boom like the North did

instability of get-rich-quick schemes

availability of credit left sme to invest in highly speculative ventures and lose their money - provided golden opportunities for confidence tricksters

Charles Ponzi

scammer operated in the early 1920s - promisd gullible people a 50% return on their money in 90 days

Florida population 1920

968,000

Florida population 1925

1.2 million

Florida Land boom

parcels of land sold to wealthy Northerners through glossy brochures

people invested in unseen developments, hoping to make a quick profit

demand for florida land boom trailed off in

1926 - there were scandals of land advertised as easy access to the sea actually in swamps

hurricanes in Florida

1926 - left 500,000 homeless and a coastline half-finished

staple industries in decline

eg, shipbuilding, railroads, textiles coal and shoe making

closure of textile mills prompted by

1913 tariffs on wool and cotton lowered - led to cheaper competition abroad

american decline of staple industries took away

2 million jobs a year

Afl lost ‘…’ members

1.7 million members - unions weakened by business leaders anti-union policies