We will take everything from you, if you do not pay!
This is all the money I have!
Farmers and factories were producing more products and goods than the people could afford. Factories were constantly closing their businesses, due to the fall of prices. Workers were asked to leave their jobs because of these repercussions. Also, the prices for farm products decreased, and farmers could not pay their bank loans. This emerged to farmers giving up their farms because they could not pay their mortgages.
I do not agree that by implementing new taxes and having restrictions on trade, will help our issue.
In the early 1920s, investing in stocks became very common, due to the economic boom that occured in the US. People were allowed to borrow money from brokers in order to invest in stocks. Later, the dow industrial average began to increase rapidly, and brokers were not able to give enough money back to people, nor did they receive the loans needed. This led to the Stock Market Crash in 1929, when there was a massive collapse in the New York Stock exchange. Wall Street investors traded about 16 million shares on the New York Stock Exchange in a one day in order to try to save the economy and people panicked.
Weak Farm Economy
I would love to help you guys but my main prirority is to not loose this land!
We produced too much products!!!
We can not even gain money from international trade!
The credit boom greatly influenced individuals to gain credit & get immense amounts of money from the bank in order to create businesses, invest in stock markets, etc. The economic boom was seen in developments of new technologies & materials. Later, the economy plumbered, & as banks asked for loans, individuals went into panic & many withdrew money from banks. In some cases banks could not give depositors their money because & this caused banks to go out of business and shut down.
Black Thursday and Black Tuesday
Our business is ruined!
I just took money out!
GIVE US OUR JOBS BACK!
The federal government installed many federal policies to try and help the economy, however they prevented the economy to recover. There was policies that raised employer costs, which contributed to the high unemployment rates. Another issue was that, most states restricted bank branching. President Hoover signed the Revenue Act of 1932, which was the largest tax increase that raised taxes from 25 to 63%. In 1930, President Hoover signed the Smoot-Hawley trade act, which raised import tariffs to 59% on thousands of products. This caused countries to implement new restrictions on imports of U.S. products. As new trade restrictions were imposed, trade plummeted.
This is a disaster.
Yes! Having policies is essential especially during this financial crisis.
we need to make new policies for the people to be controlled
President Hoover passed the Smoot-Hawley Tariff Act. This act was meant to raise taxes on imports to protect American farmers. The response to the tariffs was negative and fought against. Other countries increased their tariffs, so the trade between nations plummeted for years. Farmers and the economy, were greatly impacted by the trade decline and tariffs. Farmers also, faced the issue of overproduction of agricultural goods, when consumers were buying less. Being an impact of the financial collapse of the stock market crash.
Consumers are suffering because of the economy and so are we!
The president did the complete opposite of helping!
Are you going to lay us off?
What are we suppose to do?
The Stock Market Crash on October 29, 1929, also known as "Black Tuesday" was when the stock prices collapsed and billions of dollars were lost. The majority of investors suffered. Before the stock market crash, stock prices began to decline and people panicked. On Black Thursday (October 24), a record 12,894,650 shares were traded. The investment companies and bankers tried to stabilize the market by buying blocks of stock, but this worsened the issue.