THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks refusing to loan money
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Government crop control
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Overproduction
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Excessive rain
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Detailed explanation-1: -Crisis of the 1920s and 1930s A farm crisis began in the 1920s, commonly believed to be a result of high production for military needs in World War I. At the onset of the crisis, there was high market supply, high prices, and available credit for both the producer and consumer.
Detailed explanation-2: -Farmers Were Stuck With Surplus For farmers in particular, the Great Depression basically began after World War I. During that war, U.S. farmers had increased food production to feed European allies. Afterward, prices and demand dropped, and farmers were stuck with an oversupply they couldn’t sell.
Detailed explanation-3: -Due to surpluses and overproduction, farm incomes dropped throughout the 1920’s. The price of farm land fell from $69 per acre in 1920 t0 $31 in 1930. Agriculture was in a depression which began in 1920, lasting until the outbreak of World War II in 1939.
Detailed explanation-4: -A main cause of the Great Depression was overproduction. Factories and farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off.