Some Industrial weakness that signaled a declining economy in the 1920's were; industries such as railroads textiles and steel had barely made a profit. Also mining and lumbering which had expanded during wartime were no longer in high demand. Coal mining was another industry that was hit hard because of all of the new forms of energy such as hydroelectric power, fuel oil and natural gas. Even the big industries such as automobiles, construction, consumer goods and housing started to decline.
The experience of the farmers and the consumers at this time suggested that the health of the economy was not good at all. Mainly because basically every American was living on credit and there was a very uneven distribution of income.
3. How did speculation and margin buying cause stock prices to rise?
Speculation and margin buying caused stock prices to raise by a lot of Americans were buying items on credit because they did not have the money to pay for it; so when the bills came around to pay for the item they bought they did not have the money therefore the economy/government needed more money so the price of items had to start to raise.
4. What happened to ordinary workers during the Great Depression?
During the Great Depression a lot of ordinary workers lost their jobs and when they went to the bank to try to get their money in their savings account the bank did not have the money because they gave all of their money to the stock market therefore a lot of ordinary workers went bankrupt and where not able to support their family anymore.
5. How did the Great Depression affect the world economy?
The Great Depression affected the world economy by a lot of word trade had fallen within 40 percent.
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