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Economic effect of prohibition
Social and economic effects of the prohibition
American farmers during the great depression free essays
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Agriculture and the 1920's Boom
In the 1920's, farmers and people alike were struggling to keep up
with the highly efficient Canadian wheat producers. Many European
countries suffered great bankruptcy from World War one and could no
long afford to ship things like grain to they're countries. To add to
this, the American population had been gradually falling so there were
fewer mouths to feed.
New machinery and technology were being made ad farmers tried to take
advantage of this. This backfired. Farmers started to produce a lot of
food like wheat and grain that very few people wanted. Just as the
farming efficiency raised to the Canadians level, there was no one to
buy or nowhere to ship all this produce. This all led to farming
families rapidly losing money and supplying goods at rock bottom
prices and which yet became a struggle to sell. The boom was leading
people away from basic farming food and to other chains available to
them.
Another important reason was the lack of demand from the European
market. During the war, tons of grain had been shipped by America to
Europe, which made Europe, America's biggest customer of grain. But,
because of the devastation in the war, many European countries had
been vastly bankrupt and very few countries could afford to buy
farming goods anymore. To add to this, the republicans made it worse
by the high tarrifs put up to protect America industries. This led to
make Europe poorer so still it could not afford the American prices.
The effects were felt were all through America. Almost half of the
Americans were becoming very desperate. They saw the boom was
affecting them for the worse...
... middle of paper ...
... machinery in big supermarkets and shops lead to less demand of farm
good. Demand was less than supply.
Overall, many reasons led to the problems of the farming industry. Not
one reason is the most important as they all helped wit the cause, but
arguably the loss in European market was pretty high. Without the
demand from these European countries, the farmers lost a huge amount
of sales. The new machinery they had just added to this, as over
production meant there goods were produces more than anyone wanted. It
lead to bankruptcy as they could not afford to run these machinery and
profit fell. Together, they both resulted in arguably the worse
outcome for the farmers. There are little other things that became a
cause; prohibition meant that grain was less in demand because it was
used in the making of alcohol.
From 1865 to 1900, production of crops increased, and prices dropped. Document A. These crops were shipped east, where they were eaten and exported to other countries. This was due to technology, but government policy caused economic conditions in the west to barely improve as a result. In fact, despite the success many farmers experienced, many in the West still struggled to put food on the table.
From the expanding of railroads country wide, to limiting laws on the goods farmers sold and transportation of the goods,to starvation of the economy, agriculture began to take its own shape from 1865 through to 1900 in the United States.
After the civil war, America found itself with a high production rate, resulting in overproduction and falling of prices, as well as an increase on economic stress and the beginning of panic and prosperity cycles. The wars demand for products had called for a more efficient production system; therefore new machinery had come into place. New tools, such as the reaper, shown in document D, the wheat harvest of 1880, were introduced and facilitated production for farmers, making overproduction more probable. Variation on prices than begun to occur as shown in document A, Agriculture prices in 1865-1900, where a greater amount of goods became available for a more convenient price. This had farmers in distress, for they were losing more money than they were making.
The period between 1870 and 1900 was a time to change politics. The country was for once free from war and was united as one nation. However, as these decades passed by, the American farmer found it harder to live comfortably. Crops such as cotton and wheat, once the cash crop of agriculture, were selling at prices so low that it was nearly impossible for farmers to make a profit. Improvements in transportation allowed larger competitors to sell more easily and more cheaply, making it harder for American yeoman farmers to sell their crops. Finally, years of drought in the Midwest and the fall of business in the 1890s devastated the farming community. Most notably, the Populist Party arose to fight what farmers saw as the issues affecting the agricultural community. During the last thirty years of the nineteenth century, many farmers in the United States saw railroads and banking enterprises threaten their way of life; their work to fight these elements eventually led to a change in national politics.
The Roaring Twenties approached and the citizens in Colorado were facing rough times. In 1920, many people such as farm owners, manufacturers, and even miners were having a hard time making a living due to an economic downfall. The farmers especially, where facing the toughest of times. The price of various farm-grown goods like wheat, sugar beets, and even cattle was dropping because their goods were no longer needed by the public. Wheat had dropped in price from $2.02 in 1918 to $0.76 by the time 1921 came around. Sadly, the land that they were using to grow wheat became dry and many farmers had to learn to grow through “dryland farming” which became very popular in the eastern plains from 1910 to 1930 (Hard Times: 1920 - 1940). Apple trees began to die due to the lack of desire for apples, poor land, and decreased prices. Over the course of World War I, the prices of farm goods began to increase slowly. Farmers were not the only one facing this economic hardship while others in big cities were enjoying the Roaring Twenties.
During the 1920's America experienced an increase like no other. With the Model T car, the assembly line, business skyrocketed. Thus, America's involvement in World War II did not begin with the attack on Pearl Harbor. Starting in October 1929, the Great Depression, the stock market crashed. It awed a country used to the excesses of the 1920's.
Knowing the fact that industrialization had been really successful during this time, allowed farmers to modernize their techniques. Farmers began to use new farming machinery such as the thresher and reaper, which made the growing of wheat much faster and efficient. However since these tools were too expensive to buy, farmers went to the banks to borrow money. Banks in turn would take advantage of the naïve farmers and raise the interest rates. This would cause the farmers to fall into debt because they would still take the loan from the bank and thought that they would be able to pay them back from their crop profit. Farmers were suffering losses year after year and were forced to have their mortgages foreclosed on, as they saw it, by their Eastern Master. Eventually farmers became the slaves to the Easter Master who ended up taking away everything the farmers had owned. (Doc. D) The complaint of farmers is absolutely valid because the bankers were doing unjust to the farmers. Bankers would let them fall into debt through their high interest rates and then seize everything they owned in court.
Prohibition was designed to rid the country of businesses that manufactured, sold, and or distributed alcoholic beverages. The eighteenth amendment made it a violation of the constitution to do and of the before mentioned. This was a crime punishable up to the Supreme Court. The original idea was that Americans as a whole were unhealthy, there was too much crime and corruption, and that people were being burdened by excess taxes that poorhouses and prisons were creating. What happened? The cheap alcohol being illegally produced killed more Americans, crime and corruption went up, taxes were raised to fund the law enforcement needed to enforce prohibition, and the prisons became overcrowded.
Crops such as cotton and wheat, once the sustenance of the agriculture industry, were selling at prices so low that it was nearly impossible for farmers to make a profit off them. Furthermore, improvements in transportation allowed foreign competition to materialize, making it harder for American farmers to dispose of surplus crops. Mother Nature was also showing no mercy with grasshoppers, floods, and major droughts that led to a downward spiral of business that devastated many of the nation’s farmers. As a result of the agricultural depression, numerous farms groups, most notably the Populist Party, arose to fight what the farmers saw as the reasons for the decline in agriculture. During the final twenty years of the nineteenth century, many farmers in the United States saw monopolies and trusts, railroads, and money shortages and the loss in value of silver as threats to their way of life, all of which could be recognized as valid complaints.
Most of the reasons concerning agrarian discontent in the late nineteenth century stem from supposed threats posed by monopolies and trusts, railroads, money shortages and the demonetization of silver, though in many cases their complaints were not valid. The American farmer at this time already had his fair share of problems, perhaps even perceived as unfair in regards to the success industrialized businessmen were experiencing. Nevertheless, crops such as cotton and wheat, which were once the staples of an agricultural society, were selling at such low prices that it was nearly impossible for farmers to make a profit off them, especially since some had invested a great deal of money in modern equipment that would allow them to produce twice as many goods. Furthermore, improvements in transportation allowed foreign competition to emerge, making it harder for American Farmers to not only dispose of surplus crop, but to transport crops period. Finally, years of drought in the Midwest and the degeneration of business in the 1890's devastated many of the nation's farmers, and as a result of this agricultural depression' many farm groups, most notably the Populist Party, arose to fight what farmers saw as the reasons for the decline of agriculture.
Life Changes of Americans in the 1920's In the 1920's many American lives were improved greatly, but some lives were as bad as they had been before. The economy was booming, with cars being mass produced, and many other consumer goods such as radios, were widely available. Also more jobs became available, and many people recieved a par rise. However there were bad things such as racism about. Many ethnic minority groups were treated poorly.
Instead, it caused various social problems such as: the explosive growth of organized crime, increased liquor consumption, massive murder rates and corruption among city officials. Prohibition also hurt the economy because the government wasn’t collecting taxes on the multi-billion dollar a year industry. One of the main reasons that prohibition failed, was because it was difficult to control. the mass flow of illegal liquor from various countries, mainly Canada. “Bootleggers smuggled liquor from overseas and Canada, stole it from government warehouses, and produced their own.”
Prohibition created a great deal of problems in America even though it was trying to correct one. Prohibition was not widely supported by many people. Prohibition led to many changes in our country. Some were bad and some were good. The effects on America were mostly bad. The good effects included no one could drink and it could try and contain the effects of being drunk. Prohibition also kept many people out of trouble with the law. Puritans believed that alcohol had a terrible effect on people and that is why they supported prohibition. Prohibition was the start of a “dry” era and led to many people staying sober and not drinking alcohol at all. This was a good effect on those people and their lives. They were more focused on their lives and tried to stay healthy, by not drinking. This was not true f...
United States fluctuated greatly. For most the war would bring great opportunity for those in the agriculture industry because of the access need for produce for the nations in europe such as Great Britain. For others the war could have been a bad turn of events for the agriculture production in the U.S because all of the young males were being deported for the war efforts. Most United States citizens supported these reasonings due to the fact that countries in europe would not be able to support agricultural production due to the war taking place inside of their home lands.