The USA - Poverty In The 1920's Flashcards
Say why poverty was in urban areas?
Monopolies kept prices high and wages low, by stopping competition for customers and workers. Many African Americans had moved from the South to Northern States to work in war industries. Often restricted by prejudice and poverty to living in poor districts. Some caused by pressure of numbers when people moved to cities from rural hardship.
How was wealth distributed?
There was a big gap between the rich and poor. Under 5% of wealth owned by poorest 60% of people. 16% of wealth owned by richest 1%.
What happened to the coal industry?
It suffered from competition with oil. Cars and trucks started to take over from railways which were a major user of coal. More efficient mining technology caused workers to be laid off and wages decreased. Mining towns suffered acute hardship.
What happened to the cotton industry?
In 1920 the wartime cotton boom collapsed. In 1921 the boll weevil - a beetle that feeds of cotton plants destroyed 30% of the crop. In mid 1920’s overproduction caused the prices to plunge.
What happened to the American farm population?
For the first time ever, it began to shrink
