Limitations of the boom 1920-1929 (T1)

Question 1

Why was there a drop in demand?

Answer 1

• Less animal feed needed due to machinery (tractors)
• Lower demand for grain + higher demand for meat therefore less grain bought
• Synthetic fibres –> less cotton needed

Question 2

How did the Fordney-McCumber tariff affect the boom?

Answer 2

• 50% tax on all imports/exports means it’s too expensive to sell products abroad