USA HISTORY

Detailed explanation-1: -After World War I, why did American farmers fail to share in the general economic growth of the United States? Overproduction and competition caused falling prices. Which condition increased the negative effects of the Great Depression? Factories had to decrease production because of low demand.

Detailed explanation-2: -With the war’s end, the government no longer guaranteed farm prices, and they fell to prewar levels. Farmers who had borrowed money to expand during the boom couldn’t pay their debts. As farms became less valuable, land prices fell, too, and farms were often worth less than their owners owed to the bank.

Detailed explanation-3: -While most Americans enjoyed relative prosperity for most of the 1920s, the Great Depression for the American farmer really began after World War I. Much of the Roaring ‘20s was a continual cycle of debt for the American farmer, stemming from falling farm prices and the need to purchase expensive machinery.

Detailed explanation-4: -Farmers lost a huge part of their market, and because alcohol had been made illegal (prohibition), barley wasn’t needed their either, this meant they were producing too much grain for the demand and the value started to drop. Therefore they made less profit and paying back their loans was very hard.

Detailed explanation-5: -Farmers Grow Angry and Desperate. During World War I, farmers worked hard to produce record crops and livestock. When prices fell they tried to produce even more to pay their debts, taxes and living expenses. In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms.