Declining Industries Flashcards
Why did the coal industry decline?
Oil and gas used more to generate electricity. Many mines closed in the 1920s as demand fell. Trains were used less as cars replaced them.
By 1929 the average miner’s wage was $100 a month compared to NYC bricklayer’s $350 a month.
Why did rail decline?
Henry Ford’s assembly lines made cars cheaper and wide spread, by 1925 - 50% of the world’s cars were Ford Model Ts so people used the trains less. Commercial flight was also taking off at that time.
Why did textiles decline?
1) Tariffs of 1913 on wool and cotton were lowered so US textiles faced competition.
2) Rayon - replaced many cotton and wool textiles as it was cheaper
3) Fashion - dresses were shorter after WWI so less materials were needed.
Why did agriculture decline?
1) High demands of WWI days left the US with high supply with an extra 8million hectares of land ploughed.
2) Fordson tractor increased supply of agricultural products leading to decreasing prices
3) Foreign retaliation to Emergency Tariff Act 1921, Fordney McCumber Act 1922, so other countries put tariffs on US agricultural goods so they couldn’t sell abroad.
Agricultural Credits Act (_____)
ACR 1923 lent money to farmers but did not deal with overproduction. 1924 600,000 farmers went bankrupt.
