The US economy in the 1920s - OCR AWho didn’t prosper in the 1920s?

The USA saw a period of extreme economic growth in the 1920s. However, this growth was not evenly spread across all sectors of life in the country.

Part ofHistoryThe USA, 1919-1948

Who didn’t prosper in the 1920s?

While there were many ‘winners’ in this period, the boom did not have the same impact on everyone.

Farmers in wheat-growing regions

The bulk of farming was still connected to grain growing and faced problems after World War One. Many farmers had prospered during the war by exporting their crops to Europe, where there had been the promise of great profit. Some borrowed money to buy new equipment to maximise their production. However, the end of the war saw these opportunities disappear. This was because the Europeans restarted their own farming sector. Additionally, European governments responded to with tariffs on American goods.

These were not the only problems. Argentinian and Canadian farmers became more competitive, meaning that prices had declined. Farmers continued to leading to further collapses in agricultural prices. Farmers faced loan repayments they could not afford. They appealed to the government to help them in 1927 and 1928. However, laws designed to protect their prices were by President Calvin Coolidge.

Unskilled workers in rural areas

Despite a growing trend towards at the start of the 1920s, over 60 million people worked in farming. Many employed in this sector were not large farmers but unskilled labourers, including vegetable and fruit pickers. These workers were and usually lived in poverty. Millions were forced to leave the land because farm owners at first cut wages and then made workers redundant because of falling prices. Many workers travelled to the cities to seek employment.

African Americans

The 1920s was not a boom time for African Americans, who suffered socially, politically and economically. Economically, many African Americans lived in poverty. The majority in the South were sharecroppers. The collapse in agricultural prices saw many move north to find other work.

Socially and politically, African Americans also suffered. In the South, they lived lives under the This meant that they were separated from white people in their work, education and leisure activities. They also had inferior housing. Additionally, there was discrimination from groups such as the who challenged anyone who sought to change the separation of the races or tried to improve life for black Americans.

Many black people moved north to cities such as Chicago and Detroit. This was known as the However, even in these northern cities they were forced into ghettos and unofficial segregation.

People employed in traditional industries

The 1920s were difficult for traditional industries such as coal mining, ship building and textiles. These industries suffered due to overproduction and Their workers experienced similar issues to those faced by farmers.

An infographic representing coal miners, ship builders and textile workers
IndustryEffect
Coal miningPeople were demanding more electricity, but oil had become a more popular way of producing it. The coal industry was producing too much coal, and not enough people and countries wanted to buy it. As a result, the price of coal went down and many coal mines closed.
Ship buildingThis industry had to make thousands redundant due to a reduction in the demand for new ships.
TextilesCotton production suffered because of the invention of new synthetic materials such as rayon, which could be produced in factories with a lower number of workers. New tastes in fashion also saw a reduced need for fabric, with shorter hemlines and thinner materials.
IndustryCoal mining
EffectPeople were demanding more electricity, but oil had become a more popular way of producing it. The coal industry was producing too much coal, and not enough people and countries wanted to buy it. As a result, the price of coal went down and many coal mines closed.
IndustryShip building
EffectThis industry had to make thousands redundant due to a reduction in the demand for new ships.
IndustryTextiles
EffectCotton production suffered because of the invention of new synthetic materials such as rayon, which could be produced in factories with a lower number of workers. New tastes in fashion also saw a reduced need for fabric, with shorter hemlines and thinner materials.

The unemployed

With the problems of overproduction and under-consumption faced by some traditional industries, unemployment remained an issue throughout the period. However, it rarely went above 4 per cent. In the textile industry, some northern business owners took advantage of lower wages in the South by relocating their businesses from New England. This caused unemployment in the north.

Where unemployment was an issue, certain sectors of society were more likely to lose their jobs. Women, Hispanic people and African Americans were all heavily overrepresented among the unemployed. Poverty was a significant problem, with around 6 million families living on less than $1,000 per year. This was less than half of what many believed was the in this period.

Native Americans

Most Native Americans lived in extreme poverty. Despite being the original inhabitants of America, in the 19th century they were dispossessed of large amounts of their land. By the 1920s, they had been largely forced off their traditional lands to areas called This land was often unfertile and desolate. For Native Americans, life expectancy was extremely low and life was overshadowed by poverty.