The 1920s

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The 1920s

This lecture covers the 1920s in America.

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Lecture Note
Texas A&M University
Hist 106 - History Of The U S
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HIST 106 1st Edition Lecture 19 Outline of Last Lecture I. Introduction II. The war to end all wars III. The fourteen points IV. The Paris peace conference Outline of Current Lecture I. Roots of Depression II. Black Tuesday on Oct. 29th 1929 III. What followed? IV. Hoover’s response V. Coping Current Lecture  Roots of depression o Long bull market  Easier to get money and the money is worth more so in the 1920s, more people invest in the stock market  By 1929, 10% of Americans have some hold in the New York Stock Exchange  Businesses would invest in stock rather than in capital because the stock market was so profitable that getting your money back plus more was pretty easy  The average American is not buying the stock with money that they necessarily have and getting loans was a really popular way to buy stock  However, this means that there is more money invested in the stock market than there is in circulation o Overproduction  Overproduction of pretty much everything because business was booming and consumers were buying and were reaching market saturation  Market saturation is when you make so much product that everyone has bought your product but you keep making that product  Farm products will also get overproduced and even countries overseas are not yet recovered market and are overproducing  Before the crash occurs, prices of goods are going to drop dramatically due to the market saturation  Even though prices dropped, the cost to produce those goods stayed the same and businesses were not making as much of a profit

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