Economist 2

  • In the early 1920s the stock market was booming and the economy was running great
  • In 1929 all that had been peaceful and running smoothly turned to chaos and turmoil, the stock market crashed
  • Too many people began to invest in Dow Jones Industrial Average soon enough the stocks in the company began to plummet, all those people who invested all they had in Dow lost everything


  • A Commoditie is A physical substance, such as food, grains, and metals, which is interchangeable with another product of the same type, and which investors buy or sell, usually through futures contracts. The price of the commodity is subject to supply and demand. Risk is actually the reason exchange trading of the basic agricultural products began. For example, a farmer risks the cost of producing a product ready for market at sometime in the future because he doesn't know what the selling price will be.
  • During the Depression bread cost 9 cents, milk cost 14 cents a quart, round steak cost 42 cents a pound.
  • Relief payments during the Great Depression were givin to families in poverty. Relief payments were simply a gift of money and basic essentials to those could not afford it. These payments were made to help the general well being of the American family. The result was fewer deaths. Many people were givin food stamps in which they would be able to use that as payment for their food.