1920 to 1921 Depresssion

• Depression only lasted 18 months
• Some say that "it cured itself"
• The effects were pretty significant
• 40+% drop in producer prices (deflation)
• 31+% drop in industrial production
• 46+% drop in stock prices
• 92+% drop in corporate profits
• Lots of unemployment and pain
• Ended up being a good reset-mechanism for the economy
• The economy boomed afterwards during the roaring 20s.
• * Compared to the 2008 crash and aftermath.  The Economy was propped up by the fed and not allowed to feel pain, but there was no economic boom thereafter

Events Leading Up To The 1920-1921 Depression

• The fed raised rates to 7% to curb inflation
• 1918-1919 Flu Pandemic killed 675k Americans
• Race Riots Red Scare of 1990-20
• January 1920 Prohibition (killed alcohol industries)
• Sep 16, 1920 Terrorist Explosion on Wall Street