POLI 346 Lecture Notes - Roaring Twenties, Pound Sterling
14 Oct 2012
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Document Summary
Usd becomes as attractive as the british pound. Trade expansion during wwi then adjustment woes. Pretty much everything the us produced was in demand during the war, during peace time production demand drops off followed by the roaring twenties . Stock market crashes on october 29, 1929. Borrowed money used to purchase stocks, stock prices get too high, bubble bursts, rush to unload stocks as people can t afford to payback loans without stock yield the banks are in trouble. Economy slows down, workers are laid off, demand drops further downward spiral. Other groups more organized than before (wwi mobilized firms to make bids on contracts, etc. ) Now well mobilized to go make demands. Smoot-hawley tariff (1930) wide range of products, very high tariffs. One of two things will happen (if not both): intended to stimulate demand, or at least ensure that us market is left for american producers (protectionism) The sh tariff fails to stop slide and triggers retaliations.
