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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There was a decrease in demand for crops.
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Europeans needed to import less food.
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The price of crops dropped.
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All of the above.
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Detailed explanation-1: -In 1920, with the war over and the demand for farm goods decreasing, the U.S. government with little warning announced that it was ending price supports. The farmers, however, continued to produce at near record levels creating surplus commodities that sent prices plummeting.
Detailed explanation-2: -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-3: -Farmers had missed out on the economic boom in the 1920s. Their income was very low due to overproduction and underconsumption of their produce. Changes in people’s tastes in food as well as the impact of Prohibition had reduced demand for arable crops .
Detailed explanation-4: -For farmers, the 1920’s were years of overproduction, debt and depression.