Definition: Buying on margin means purchasing stocks with borrowed money, paying only a portion of the total cost upfront.

Highlight: Between 1923 and 1930, approximately 5,000 banks failed or went bankrupt, largely due to agricultural sector problems.

Example: Farmers faced a devastating cycle: overproduction led to price drops, resulting in reduced income and inability to repay loans, ultimately causing bank failures.

Quote: "During the boom of the 1920s, the weakness of banks went unnoticed."

Definition: Consumer confidence refers to people's belief in the economy's health and their willingness to spend money.

Highlight: The stock market crash of October 1929 resulted in an 89% loss of market value.

Example: The crash triggered a domino effect: banks failed, depositors lost savings, companies reduced production or closed, and millions became unemployed.

Quote: "When people think the economy is struggling, they spend less."

Definition: Consumerism refers to a pattern of continuously desiring and purchasing new products.

Example: Manufacturers adopted Henry Ford's efficient production techniques and expanded their product lines to meet changing consumer preferences.

Highlight: Despite apparent prosperity, significant economic problems were developing beneath the surface, including struggling farmers, excessive consumer debt, and overproduction.

Vocabulary: Consumer demand refers to the willingness and ability of people to purchase goods and services.