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.
suicide rose as a result of debts and the pressures being put on people who couldnt handle it. ill health rose as a result of poor hygene and living conditions. Elderly people were robbed of pensions and svaings and so had nothing to live for anymore. Women before the depression had begun getting involved in the stock market. so during the depression they lost money like the men did.
Fearing that banks would close, customers lined up to withdraw their money. Since banks rarely keep enough cash on hand to pay all their customers at once, many banks shut down. The Great Depression was the time of great economic hardship, had begun. As banks failed or cut back on loans to businesses, factories produced fewer goods and there... ... middle of paper ... ... not return until United States entered World War II in 1941. After World War I, the price of food began to drop causing some dramatic effects on the United States economy.
Farmers weren't doing to well because they were producing more crops and farm products than could be sold at high prices. Therefore, they made a very small profit. This insufficient profit wouldn't allow the farmers to purchase new machinery and because of this they couldn't produce goods quick enough (Drewry and O'connor 559). A new plan was created called the installment plan. This plan was established because many Americans didn't have enough money to buy goods and services that were needed or wanted.
It was said that perhaps the largest problem was the problem with poor grain. For the majority of people there was also the problem of land. For these people they either had no land of their own or insufficient amounts of it to support a family even when times were good. Poor harvests also had an effect on government as well. Bad harvests tended to cause the taxes to fall and couldn’t provide sufficient provisions for the army.
Another factor was the maldistribution of wealth. Consumer demand decreased, and a stable market could not be created. In 1929 although the economy grew, many Americans could not afford to buy merchandises industries were producing. A third factor was that the economy’s credit structure was horrible. Farmer’s crop prices were low and they could not pay off their debt.
Overall, great societies fall because of internal problems such as, unemployment which leaves people begging for money, political corruption that has government officials constantly fighting, and fast expansion making it very difficult for soldiers to be at all of the borders protecting the whole empire. One of the main reasons great societies fall is because of unemployment. Wealthier people owned farms and had slaves work, making their goods cheaper. However, farmers who had freed men that they had to pay could not sell their goods for very cheap, because they needed the money to pay the workers with. Eventually, the farmers couldn’t keep up with the cheap goods and eventually lost their farms leaving them unemployed and the freed men working for them.
Famines continues and debts got worse, many became resentful and they had no money to improve farming techniques. Urban conditions meant there was not enough money to feed cities and the armies fighting the war. Working conditions for making iron and cotton mills were poor. People, including children had to work for up to 16 hours every day and only received low wages. Factories towns were overcrowded.
Some of the main causes of the great depression were that there was overproduction of food and also industrial parts, banks gave out too many loans and at the end people could not pay them, and also the stock market crash of 1929. Farmers in the western world produced more food than Americans needed. Farmers then couldn’t sell the food and then lost their farms. Industrial workers produced too many things. Workers couldn’t buy goods.
Due to this, a global excess of agricultural products, decreased profits and prices. Many farmers could not make money off of their crops, so they also could not pay back loans from the bank. This weakened banks and forced them to close. In addition, American factories were making most of the world’s goods. There were large profits being made, but there was an unequal distribution of wealth, which made the rich, richer and the poor, poorer.