HST 369 Lecture Notes - Lecture 3: Bonus Army, Reconstruction Finance Corporation
3 Nov 2016
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The end of the world as they knew it: the depression begins. Stock market hit its low on thursday october 24th, black thursday. Black tuesday, october 29th 1929 billion drop. Overproduction to support wartime efforts is no longer necessary, prices begin to fall. 1929 wheat prices hit all-time low and the market becomes flooded with extremely cheap commodities. The age of rapid and aggressive expansion of the rail road ends. There is no longer an extreme demand for steel, timber, etc. (cid:271)y the se(cid:272)o(cid:374)d half of the 20 s eve(cid:374) de(cid:373)a(cid:374)d for the (cid:272)ar (cid:271)egi(cid:374)s to shri(cid:374)k. The market for new cars shrinks and used car sales increase. No longer a need for buying as much rubber, steel, etc. Ford closed the river rouge plant for 6 months. 1% of the largest banks control 46% of the assets. Top 5% of income earners make 30% of income. Prior to this purchases were made in cash.
