to promote consumerism
- Business men, middle-class workers, and some factory workers made
enough money in the 1920s.
- Workers with low skills that worked in factories such as the textile
mills, coal mines, and steel mills did not make enough money in the
- Many Farmers struggled in the 1920s because they could not make
enough money to pay off their debts.
- The federal government did not do much to help the farmers.
- President Coolidge vetoed bills
that would have helped farmers because it would make consumers pay
more for farm products.
- Demand for American products decreased in the late 1920s for three
1) The wealthy had already bought all that they wanted.
2) The poor did not have the money to spend.
3) High tariffs limited trade with Europe.
- Inventory is the amount of products that have been made, but that
are not yet sold.
- The decrease in demand forced companies to stop hiring and stop
building new factories.
High Levels of Debt
- Many consumers were in debt because they still owed money on all
of the products they had already bought through installments.
- Business was also in debt because they borrowed money to expand
and make more products.
A Shaky Stock
- Speculators took large risks playing the stock market.
- Speculators: bought several stocks, only paid a small portion, and
sold the stocks at a higher rate.