Question

"Where then is the average man's share of the prosperity promised in the election of Mr. Coolidge? It has not arrived and it is not discernible on the horizon. But when the stock boom spends itself and deflation sets in, the average citizen will be invited, as usual, to sustain the losses."—From an editorial in The Nation, February 28, 1925

What problem of the 1920s economy does this excerpt emphasize? (5 points)


Uneven distribution of income
Falling crop prices
Credit purchasing
Bank failures

Answer 1

The correct answer should be Bank failures. Banks were working with investors in working with stocks. The editorial states that the banks will soon fail because of it and that it is the common people, not the wealthy elites, who will have to repair it. This is exactly what eventually happened in the 30s when the great depression came.