Reasons as to why it wasn’t all roaring/Great Depression

Question 1

Reasons in the 1920s that meaning it wasn’t all roaring

Answer 1

• some regions were far more prosperous than others which could cause inflation it cause which caused employment to become frequently erratic.
• technology which caused overproduction and therefore farms were losing money
• no effective banking system(social welfare programme)
• old industries declining

Question 2

Give me three examples of how some regions were far less prosperous than others

Answer 2

In 1926 North Carolina male workers received $18 a week and at the same time in New you’re city the average weekly wage was $200 and $48 of that $200 was considered the minimum required for a reasonable standard of living.

• in 1929 the northeast of America had the highest per capita income which was $921 and the southeast has the lowest $365
• in Middletown 75% of families earned below the sun recommended by the federal bureau of labour as necessary for a reasonable standard of living.

Question 3

What industries began declining?

What percentage of small businesses were falling?

Answer 3

• coal declined as oil use grew
• agricultural industry began declining.
• 50% of small businesses were falling by the late 1920s

Question 4

Why by some regions being far less prosperous than other be bad for the economy?

Answer 4

-caused employment to be erratic:72% of worked in Middletown had been unemployed at some stage,43% for over a month.

Question 5

What percentage of farms were losing money during the 1920s?

And give me some reasons why

Answer 5

66%

• prohibition lessened the demand for grain
• synthetic fibres were replacing cotton
• technology such as tractors and fertilises enabled farms to overproduce meaning prices fell

Question 6

Why could technology be a reason for the bust?

Answer 6

Tractors and fertilisers caused overproduction for instance in farms
-many starters had warehouses full of unsold goods and stopped placing orders.

Question 7

How did the government tried to help farmers?

Answer 7

• 1922 fordney mcumber tarrif

- 1923 agricultural credits act meant loans were offered

Question 8

Why did government help in some aspects make things worse?

Answer 8

Tarrifs Caused a decline in international trade Europeans began to put import taxes on American goods which meant it was harder for American businesses/farms to sell their goods internationally

Question 9

How many banks were in the us altogether and how much failed during the 1920s and 1930?
Also explain why banks couldn’t cope during difficult times .

Answer 9

There were 30,000 banks in the us most small and unable to cope with difficult times as there was no effective system of federal regulation.
-roughly 500 banks failed each year in
1920s
-And 1350 banks failed in 1930