Roaring Twenties: Culture and Economy · US History

Why did many American farmers fail to share in the general prosperity of the 1920s?

  1. A lack of new technology prevented them from increasing production
  2. The government placed a heavy tax on all agricultural exports
  3. Overproduction of crops led to a sharp, sustained drop in prices
  4. Most farmers refused to use the new installment plans for tractors
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Correct answer: Overproduction of crops led to a sharp, sustained drop in prices

During WWI, demand for food was high, but after the war, European agriculture recovered and demand fell. American farmers continued to produce at high levels, causing prices to crash and leading to widespread farm foreclosures long before the 1929 crash.

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