Unfortunately, by giving out more loans, the state banks had put more paper money into circulation, causing the value of the dollar to plummet. Inflation hurt the economy which
The critical problems in the late 1920’s, threatening american economy was the older industries such as textiles, steel, and railroads, which were basic to the fundamental well-being of the economy, were barely profitable. Crop prices dropped, americans thought the nation would continue to prosper under Republican leadership. The bottom fell out of the market and the nation's confidence, and half of the banks failed. The causes of the stock market crashed and the Great Depression made the collapse of the economy occur more quickly and the depression worse than it could have been. Many were out of a job, and others experienced pay cuts and reduced hours.
Typical of when money and credit circulation decreases, prices went up. The Panic had exposed the cruelty and injustice of economic inequality in America. Workers, upset over inflation and layoffs, went on strike. People who had money were able to expand and become wealthier. Unable to make a living in the filthy, overpopulated manufacturing cities, many Americans moved westward, invading the lands of the Native Americans.
Farmers and manufacturers could not do their jobs when they kept losing money by doing their jobs. The more they spent on items or food, the more their business suffered. The Great Depression was a lose lose situation for factories and farms since they lost money by overproducing and by dropping prices to fix the
The Agricultural Adjustment Administration, the Federal Emergency Relief Administration, and the Social Security Act of 1935 were instrumental in securing the economy. The Agricultural Adjustment Administration paid farmers to reduce production of crops, which raised the prices. The increase in prices gets more money flowing into the economy and keeps
Farmers were struggling greatly after the Great Depression because nobody could pay for their crops, and their land was too expensive for them to pay for it. Although, the Federal government created the Agricultural Adjustment Act which stated, “They paid farmers to reduce the amount of crops they planted, in order to cut excess production”(Kantor’s Website). They used the method of supply and demand to help build back up the world of farming. The government would help them pay for the amount of time that they were having to miss farming, but the prices on the crops would increase drastically. These financial crises were lifted off of the
In the article The Balance, “The farmers could not profit of the little crops that they had due to deflation.” Since they could not profit off their crops they had a very hard time living there lives. There kids sometimes had to drop out of school because their parents could not afford to hire help. This made children lose out on learning time, causing them to have lost a lot of valuable knowledge. On the web page US History, the article about Farmers Lives In The 1930’s, says, “More than one out of five farmers was on financial aid, because they could not make any money by selling their crops.”
American farmers became poorer in the 1920s as their paycheck was only one-third of the national average. The main problem was overproduction. The farmers were helped by the advances of new technology, but the glut of product, combined with overseas competition, caused prices at the market to drop heavily. A high percentage of farmers wanted federal government subsidies (a sum of money granted by the government to boost an industry) to assist farm incomes. When Hoover was still Secretary of Commerce, he rejected this solution.
Which the farmers were not making any expense, so they grew more crops than before, and that made things worse. In which it led farmers into a big debt and problems. One of them was the tariff policies during the Gilded Age. Farmers were the victims and were forced to buy manufactured goods to be protected by tariff legislation. But what they produce was not protective and more competitive markets soon to rise of over supplies and foreign competition.
The farmers felt that they were paying more and more to take loans and borrow money, to buy farming necessities and to sell their crops. The prices that had for the crops was degrading dramatically.
Some of the farmers no longer had their land due to the military taking over their property for use combat. In addition, the prices sky rocked because of the inflation. These were farmers who also served time in the war along with Shay and they could not even get paid from the government for their services rendered. Who can these farmers pay their bills if they did not get paid? The war brought additional money, but the inflation was the cause for higher
The period was also characterized by cheap labor as many would work for small wages only to get funds that would help purchase food and clothing. To counteract the effects of the grand depression, the Federal government should have adopted policies to increase currency slow in the economy and reduce the rate of unemployment. To begin with, lowering interest rates would have increased the attractiveness of loans hence increasing borrowing from the public. The result is a rise in funds available for spending thereby farmers would have enough resources to undertake farming activities. Understandably, fed identified such, but did not lower interest rates to levels that could significantly influence levels of borrowing and attractiveness of loans.
However, in 1929 the economy crash lead to the Great Depression. With everyone living very lavish lives, the depression settled in very quickly. The tax reduction lead to the growth of consumers led to demand for agricultural products. However, this demand was only temporary and did not provide a long-term stability for farmers. This increase in industrial then led to overproduction, which caused prices to fall and have many farmers go bankrupt.
Although agriculture benefitted from new inventions, science, and opening of new farmlands, particularly in the Midwest, the farmer did themselves did not. Competition from larger agribusiness made it necessary for the small farmer to invest in expensive machinery, driving debt rates higher. Better production drove prices down. Railroads charged exorbitant rates—and the weather continued to make farming a dicey undertaking.
Tragedy can spread. In Death of a Salesman, Willy Loman is the protagonist, however he not the only person in the play who’s story ends tragically. His view on life spreads to those close to him. Primarily, Willy teaches it to his children who look up to him while his wife simply attaches herself to him, rooting for him in blind support while really she should be waking him up to the cold and dark reality that is their life. Throughout the play, the Loman family evolves differently.
