Poverty in 1920s

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  • Created by: Jasmin
  • Created on: 08-04-13 15:32
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  • Poverty/Problems in 1920s
    • Urban areas
      • Monopolies (where a whole industry is owned or controlled by one compant or alliance) kept proces high, wages low by stopping competition for customers and workers
      • Many African Americans moved from South to North to work in war industries
        • Restricted by prejudice and poverty
      • Urban poverty produced by pressure of numbers, moved to cities because of rural hardships
    • Industries suffered
      • Coal
        • Too much being produced , market decreasing competition from oil, gas, electricity - alternatives
      • Cotton boom collapsed
        • 1921 boil weevil - beetle that feeds on cotton plants - destroyed 30% of crop
        • Overproduction - prices dropped, wages fell
    • Problems in agriculture -> rural poverty
      • Mechanisation meant fewer farmers required
      • Overproduction - falling prices, falling profits
      • Taxes, mortgages, wages rising - reducing farmers profits
      • Foreign competition
        • Canada gave grain to the rest of the world
        • Russia, Argentina and Australia also competed
        • European agriculture recovered from war due to the other countries who sold to Europe
      • Republican didn't believe in direct help to farmers
        • Congress passed McNary - Haugen bill (allow gov to buy farmers crops)
          • President Coolidge vetoed it twice - thought would encourage overproduction
      • American farm population began to shrink

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