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The Great Depression

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yarelicasas's version from 2017-12-13 05:25

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Explain the economy in the last few years of the 1920s"stay out of business" bussiness of america is bussines. meaning for free inter-price, gov't was staying out of business. ## of Monopolies increased. There was concentration of wealth- lead to speculation in stocks. So, stock speculation was on the rise. Because the monopolies- concentration of wealth grew, stock speculation was on the rise. Only wealthy people owned stocks.
Over production Under ConsumptionEx: Too many vacuum cleaners, not enough people buying. The cycle repeats and worsens
The stock market crashed October 29, 1929
wealth was on top, less at the bottomend of 1920 workers income was decreasing. Factories are going great, owners doing great, BUT the working people were not seeing their wages go up. Workers income were not able to support their families.
after the great depression started ....food clothing and shelter. 60 % fmailies were not making enough money to even meet the basic necessities. So, they decrease spending,
1920sare great.... making money and one day you just stop selling. Because people are not buying, dude to not being able to provide basic necessities
Bussiness ownernot selling, has to cut production, close some hours, has to let go of workers. 1 factory 4-5 people...... thousands of factories.... thousands of people becomes a big deal.
spending decreases you now haveover production under consumption
Economy condition got worse..stocks continued to decrease, lay offs, bank "runs", agricultural prices decreased, psychological effect
memorize