The fragile economy of the 20s

1920s economic policies

Horizontal price-fixing involves firms that would normally be competitors getting together to agree on stable and higher prices for their products. It seemed as if financial meltdown was not only a possibility, it was a certainty unless drastic action was taken.

1920s economic boom

Keller, In the generation of electricity, larger steam plants employing higher temperatures and steam pressures continued to reduce coal consumption per kilowatt hour.

The criterion of an unreasonable restraint of trade was used in the and decisions that found the American Can Company and the United Shoe Machinery Company innocent of violating the Sherman Act; it was also clearly enunciated in the U.

His priority was to protect companies that paid high wages from competition from cheap imported goods Vedder and Gallaway, They could not produce their own fuel for tractors as they had for the workstock.

The fragile economy of the 20s

Between and , output per labor-hour rose nearly one third in bituminous coal mining and nearly four fifths in anthracite as more mines adopted machine mining and mechanical loading and strip mining expanded. Sociologist Max Weber hoped for charismatic leadership to overcome bureaucracy. That removed cash from their reserves. Loans were called in and lending, even for deserving cases, was curtailed; the banks gained liquidity by bankrupting many of their customers. High levels of investment, significant productivity advances, stable prices, full employment, tranquil labour relations, high wages, and high company profits combined to create the perfect conditions for a stock-market boom. In response to this, American farmers expanded production by moving onto marginal farmland, such as Wisconsin cutover property on the edge of the woods and hilly terrain in the Ozark and Appalachian regions. Until the late thirties the AFL was a voluntary association of independent national craft unions. These changes resulted in more and more farmers purchasing and using tractors, but the rate of adoption varied sharply across the United States.

When it became law, this legislation raised US import duties and ultimately led to retaliatory action throughout the world.

Several countries e.

Roaring 20s

To stop speculation , the Fed raised the discount rate from 3. For example, because nominal interest rates had been reduced to a very low level, the Fed believed that it was pursuing an appropriate easy money policy. The Communications Act of essentially repeated the act except that it created a permanent, seven-person Federal Communications Commission FCC. In a new network, the Columbia Broadcasting System CBS financed by the Paley family began operation and other new networks entered or tried to enter the industry in the s. Austria, Hungary, Greece, Italy, and Poland, together with several Latin American countries, were also considered attractive opportunities by US investors. Real average weekly earnings for females rose on 1. Figure 13 The sources of these changes are to be found in the increasing supply due to productivity advances in coal production and in the decreasing demand for coal.

The producers of automobiles, petroleum, typewriters, sewing machines, and harvesters were typical of those manufacturers that integrated all the way into retailing.

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The U.S. Economy in the s