1a: 1920s Econ boom - Limits to prosperity Flashcards
Which three groups did not see an improvement over this period?
Women, Farmers, and black Americans
How did farmers benefit from the war and the years preceding 1920?
Prices rose over 25% and more land was taken into cultivation.
What was the issue for farmers in the 1920s?
Demand fell; so did prices.
Wheat prices fell from $2.5 per bushel to $1.
Why did demand for grain fall over this time?
Prohibition: Grain wasn’t needed for alcohol manufacturing.
Higher living standards meant more people were eating meat, and less cereals.
How did the growth of synthetic fibres impact farmers?
The market for natural fibres, such as cotton, fell, harming farmers.
How did technological advancements affect farmers?
They became more efficient, thus 13 million acres were taken out of production (and farm population decreased by 5%) but productivity increased by 9%.
Further, it led to overproduction.
How did the increase in tractor usage negatively affect farmers?
Horses were no longer that necessary.
Thus, demand for animal food declined.
Overall, what issue were farmers facing across the 1920s?
A fall in demand.
How many farms were operating at a loss due to these factors?
66%.
This really impacted many black Americans who filled jobs such as wage labourers, tenant farmers, and share-croppers.
What was the biggest problem for farmers?
Overproduction, as this meant prices became lower but no one wanted to risk underproducing as they could not trust their neighbours to do the same.
What did farmers want the govt to do with their surpluses?
They wanted the govt to try and sell as much of it abroad as possible, for whatever price.
Which group of farmers were hurt the most?
Small scale farmers - often went bankrupt.
Many big farmers actually improved.
What did the state do to help farmers and what is this emblematic of?
Encouraged farms to co-operate together to market produce, emblematic of the laissez-faire, do nothing approach.
The Agricultural Credits Act of 1923 funded 12 Intermediate Credit Banks to offer loans to co-operatives.
Why did state policy not benefit small farmers?
Unlike large agricultural businesses, small farmers could not afford to take out loans to market their produce more effectively as it would saddle them with debt.
This meant large businesses could squeeze small farmers out even more.
What happened to the land of farmers and their mortgages?
Their mortgages were foreclosed and the land they had been on for generations was taken away.