After WWI farm goods dropped in value and farm land rose in value. Investors bought farm land as a good investment but, farmers still produced an overflowing amount of farm goods which caused land prices to decrease in value. Since the investments of farm land were so costly investors lost their money. This was the start of the Great Depression.
In the 1920s about half of the U.S. population were farmers. So when the investors didn't pay the farmers, the farmers had no money to buy goods they needed from factories. This resulted in factories laying off many workers.
This kind of domino effect lead to many factories and banks closing. The result of this lead to the rise of unemployment.
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Since town resident had little income, taxes were hard to pay. Many lost their land and houses. In an effort to lower taxes the government cut teacher's salaries.
WWII
good economy
The enviroment during the Great Depression was hostile. Winters were long and cold and Summers were hot and arid.
During the Great Depression water was scarce. The water kept soil in place but, since the land was arid winds could easily pick up the the soil creating the Dust Bowl.
The dust blocked out the sun, suffocateed livestock, and caused pneumonia in children.
What got the U.S. out of the Great Depression was the start of WWII. This renewed the demand for farm and manufactured goods.
Demand for farm goods
Demand for manufactured goods
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