Poverty in 1920s
- 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
- Coal
- 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
- Congress passed McNary - Haugen bill (allow gov to buy farmers crops)
- American farm population began to shrink
- Urban areas
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