The U.S. economy in the early to mid 1920s was strong andfor the most part healthy.-Stocks were valued at $27 billion in 1925 and that numberrose to $87 billion by October 1929.-Real wages increased 40% in the 1920s and unemploymentaveraged below 4% (even with the use of the assembly line).-The government also believed the economy was strong,even though many Americans were buying stocks withborrowed money in the late 1920s.-President Hoover predicted, “poverty will be banished fromthis nation.”
