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Economist 5



During the 1920s, many people invested money in the stock market. The stock market is how companies raise money to grow larger. In the early 20s the prices of most stocks went up because of people borrowing money from loan companies to buy stock. In the late 20s problems began because American companies were making more goods than buyers wanted. People lost their jobs and some were forced to sell their homes and farms. Farmers were having a hard time selling their crops. The Dow Jones industrial average is 7062.93, changed by -119.15. The importance of the stock market was to help Americans earn money on stocks around the country. Everyone placed their money into stock bonds at banks to save their money. But when the banks crashed everyone lost all their money that were in the banks.

After World War I prices of various commodities had dropped dramatically due to bad economy. Main reason prices dropped was because the stock market crashed and no one could afford any commodities. Prior to the depression a shopping list for a family would include, food, clothes, and other valuables. But during the depression that list would drop down to little amount of food if any and that was it. Families couldn't afford anything else.
Definition of commodity: something that can be turned to commercial or other advantage.

Relief payments were a loan that people could borrow but than had to pay back. These payments did not work out to well because people took loans but they couldn't pay them back.



Bryan Horst