THE ROARING 20S 1920 1929
AMERICAN ORGANIZED CRIME OF THE 1920S
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
They were making huge profits selling their food overseas.
|
|
|
They were losing money since they didn’t have the military or the allies to feed anymore. (overproduction)
|
|
|
They were having a hard time keeping up with the demand for the food that they were growing.
|
|
|
None of the above
|
Detailed explanation-1: -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-2: -What problem did farmers face following World War I? a surplus of crops because of new farm equipment and a decreased demand for food after WW1 so farmers couldn’t pay off their crops because so much food wasnt need.
Detailed explanation-3: -When the production costs of crops exceed the selling prices, then the farmers suffer. They lose their money rather than profit. It is very hard for them to gain the benefits of excess production. They become disappointed about future production.
Detailed explanation-4: -World War I led to a new approach in Federal agricultural policies–a guarantee of minimum prices for wheat and hogs. Farm prices rose, the Government called for increased production, and farmers responded.