The Economy of the The Economy of the 19201920’’ssChapter 22 Section 4Chapter 22 Section 4

Key TermsKey Terms Define: installment buying, bull Define: installment buying, bull

market, buying on marginmarket, buying on margin

Industrial GrowthIndustrial Growth As more good came in, prices droppedAs more good came in, prices dropped Installment buying was offered on high Installment buying was offered on high

price items (ex. Cars)price items (ex. Cars) Advertising: radio commercials, Advertising: radio commercials,

magazinesmagazines Vacuum cleaners, toasters, washing Vacuum cleaners, toasters, washing

machines, and refrigeratorsmachines, and refrigerators Reckless spendingReckless spending

A Booming Stock MarketA Booming Stock Market More people began to invest in the More people began to invest in the

Stock Market making it a bull marketStock Market making it a bull market People began to buy on marginPeople began to buy on margin Americans grew wealthy in the stock Americans grew wealthy in the stock

market but investors began to place market but investors began to place warnings which Americans ignoredwarnings which Americans ignored

Signs of TroubleSigns of Trouble FarmersFarmers

*Many farmers lived in poverty*Many farmers lived in poverty*Farmers grew more than Americans *Farmers grew more than Americans wanted (it was ok in the past wanted (it was ok in the past because they sold products abroad)because they sold products abroad)*High debt*High debt

WorkersWorkers*High unemployment (assembly line)*High unemployment (assembly line)

Election of 1928Election of 1928 Republican Herbert Hoover v Democrat Alfred E. Republican Herbert Hoover v Democrat Alfred E.

SmithSmith Smith: 1Smith: 1stst Catholic to run and immigrants supported Catholic to run and immigrants supported

himhim Hoover: supported by rural residents and Hoover: supported by rural residents and

Protestants, RepublicansProtestants, Republicans Hoover winsHoover wins

HW: Documents with questions handoutHW: Documents with questions handout

Chapter ReviewChapter Review