Economic Inequality and Crisis in the 1920s

The economic boom of the 1920s led to a significant gap between the wealthy and the rest of the population. The top 5% of Americans earned a disproportionate share of the national income, while a large portion of the population struggled to make ends meet.

The agricultural sector faced challenges during the 1920s boom. Farmers struggled with overproduction, high competition, and low demand, resulting in widespread poverty and foreclosures, particularly in the Great Plains region.

Racial and ethnic minority groups faced discrimination and limited access to the benefits of the economic boom. They often encountered barriers to employment, education, and housing, contributing to their low living standards and poverty.

Industries like manufacturing and finance thrived during the 1920s boom, leading to increased production of consumer goods and a rise in disposable income for workers in these sectors. This contributed to a growing middle class and increased leisure activities.

The rise of the automobile and its impact on urban development led to the growth of suburbs, where people could live further away from city centers. This growth was accompanied by the development of new infrastructure, including roads, schools, and hospitals.

The booming economy in the 1920s enabled professionals, small business owners, and skilled workers to invest in the stock market, which provided significant profits for those who participated.

Large farming businesses benefited from the increased demand for food in urban centers, as well as advancements in agricultural technology, which allowed them to produce more crops and diversify their production.

Hire-purchase schemes allowed individuals to buy consumer goods by making regular payments over time, increasing affordability and contributing to the consumerism of the decade.

The development of man-made fabrics like rayon led to a decline in the cotton and textile industries, causing unemployment and lower wages for workers in these traditional sectors.

Small farmers, encouraged to produce more during World War I, faced overproduction after the war, leading to falling prices and mounting debt, forcing many to lose their farms.

Due to lower education levels and discrimination, immigrants often found themselves confined to low-paying jobs, limiting their benefits from the booming economy.

African Americans in the South, primarily sharecroppers, faced mass job losses as small farmers lost their farms, contributing to their economic hardship.

New York's Harlem district, a heavily populated and segregated area, became a center for African Americans facing discrimination and overcrowding, highlighting the social inequalities of the time.