DEPRESSION

DEPRESSION - The 1920s were years of great prosperity and...

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The 1920s were years of great prosperity and development for the United States. The economy was booming, but business activity began to slow during the late 1920’s as America entered a mild recession, a regular part of the business cycle. Normally the economy will begin to recuperate and enter the recovery stage of the cycle, but this did not happen. Sparked by the stock market crash of 1929 and backed by many other factors, the United States economy entered a severe depression. During World War I federal spending was three times greater than the amount of taxes collected, so after the war the government cut back spending in an effort to balance the budget, but this only aided in the economies recession. Also after World War I, most of the European economy was left damaged, which was especially good for American wheat farmers, because they were able to increase their prices and export their crops to Europe. They even began to take out loans in order to purchase more land and produce more wheat. But the European countries recovered more quickly than expected, leaving United States farmers with an overabundance of wheat, not enough buyers, and an added debt they were now unable to repay. Another even that hurt the farming industry was the dust bowl, brought on by the drought in 1930. Over-farmed land began to literally blow away, and families who lost their ability to make a living by farming, had to abandon their homes in search of work. Technology in the 1920s made way for new products that the American people were eager to buy. The assembly line implemented by Henry Ford made the production of automobiles quick and inexpensive, which ignited road and highway construction. The assembly line was also implemented into appliance production, and people bought
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DEPRESSION - The 1920s were years of great prosperity and...

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