Economic Inequality and Crisis in the 1920s

What factor contributed to the decline of the cotton and textile industries?

What happened to small farmers after the First World War?

Which group faced significant job losses along with discriminatory practices in Northern cities?

What was the living condition of most small farmers during this period?

What was an economic consequence faced by older industries during the boom?

What was one major reason for the lack of benefits from the economic boom for certain populations?

Which groups faced significant barriers to employment during the economic boom?

How did the economic boom specifically benefit large companies in urban areas?

What economic trend contributed to the high level of inequality during the 1920s?

What was a significant challenge for farmers during the economic boom?

Which class of individuals was able to benefit from hire-purchase schemes during the economic boom?

What technological advancement aided large farming businesses in diversifying their crops?

What percentage of Americans were living below the poverty line during the economic boom?

Economic Boom Inequality

The 1920s economic boom in the USA was not evenly distributed.
Top 5% earned 33% of national income.
60% earned less than $2000 per year.
40% lived below the poverty line, disproportionately impacting farmers, Black Americans, and immigrants.

Agricultural Crisis

Farmers faced high competition and low demand for produce.
This led to widespread poverty and widespread farm foreclosures, especially in the Great Plains.
Production increased due to technological advancements like combine harvesters.
600,000 farmers lost their farms due to debt.

Discrimination and Limited Opportunities

Racial and ethnic minorities faced substantial discrimination.
Limited access to economic boom benefits, including employment opportunities.
Black Americans, Hispanics, and other minority groups often had the lowest-paying jobs.
Poor education, inadequate housing, and low living standards often worsened conditions for many minority communities.
African Americans were sharecroppers, and as small farms failed, they lost their jobs.
Overcrowding and segregation impacted many minority communities, such as Harlem in New York.

Boom Winners

New Industries: Companies in consumer goods (car industry) and large-scale construction (skyscrapers) saw tremendous profits.
Increased Wages & Disposable Income: Workers in these industries saw better pay and more leisure opportunities.
Urban Middle Classes: Professionals, small business owners, and skilled workers utilized hiring schemes/stock market to increase their wealth.
Suburban Growth: The rise of carownership spurred housing growth in suburbs.
Large Landowners: Larger farming businesses used technology for diversification, profiting from high demand in cities.

Boom Losers

Older Industries: Decline in cotton, textile, and coal industries due to competition and technological advancements.
Immigrants: Limited access to high-paying jobs due to education and language barriers.
Small Farmers: Increased production due to war-time demand but resulted in falling prices of their goods after the war, leading to widespread debt and farm losses. Poor living conditions.
African Americans: Low-paying jobs, segregation, sharecropping, and overcrowding in urban areas.

Explore the economic disparities during the 1920s in the USA, highlighting how the wealth was concentrated among a small elite. Discover how the agricultural crisis impacted farmers and the profound discrimination faced by racial and ethnic minorities, limiting their access to the economic boom. This quiz covers significant social and economic challenges of the period.