Essay on The Great Depression

Following the Civil War, a second industrial revolution in America brought many changes to the nation’s agriculture sector. The new technologies that were created transformed how farmers worked and the way in which the sector functioned. Agriculture expanded and became more industrial. Meanwhile government policies, or lack of them for a while, and hard economic conditions put difficult strains on farmers and their occupation. These changes in technology, economic conditions, and government policy from 1865 to 1900 transformed and improved agriculture while leaving farmers in hardship.

Farmers faced many issues in the 1800’s. First off, debt was a huge issue for farmers. Falling crop prices, unpaid loans, and crashing banks all led to the huge debt of farmers. Because the crop prices were falling in the horrible economy loans could not be paid back, unemployment soared, and businesses went under. There was also the tariff issue. Tariffs on imported goods were discouraging people to buy these products. They raised

In the late 19th century, farmers all over the country were filled with discontent due to the rough financial and agricultural conditions they were experiencing on the farm. As far back as the Homestead Act of 1862, which gave families land grants west of the Mississippi, farmers have been migrating West. Manifest Destiny was driving these families west creating jobs and opportunities, which had greatly impacted the time. This period before the late 1800s had produced high numbers of wheat, agricultural technology, and success for hard working farmers. The perfect life started to disintegrate with the increase of farmers, and the high amount of wheat being sold. With wheat prices dropping, farmers going into debt, and businesses controlling the economy, the farmers were starting to experience hardships like never before. This was the start of the depression of 1893. Farmers had experienced a number of problems during this time, but the conflicts of the Bimetallic Standard in currency, the overpowering big businesses, and the lack of government interference had contributed greatly to the validity of the farmers argument.

“Many California farms were corporate-owned. They were larger and more modernized that those of the southern plains, and the crops were unfamiliar”(American Experience). When families left their homes, most went to California to look for jobs. However, there was already a high unemployment rate because of The Great Depression. Also, when farmers got to California, the farming ways were different than what they were use to. Finding a job within their range of skill was very challenging. “With the onset of World War 1, the demand for wheat had been astonishing. Farmers were paid record prices. Thus, to the farmer, it made sense to turn every inch of the Southern Plains into profit. During the war, the land produced millions and millions of bushels of wheat and corn, which helped to feed America as well as numerous nations overseas”(United States History). War had affected farmer’s choices a great deal. Farmers had put so much effort into their plantations. When the drought came, all their hard work had been destroyed. The farmers did not have their beautiful plantations anymore and were not able to make the money to pay for their homes. Many farmers were kicked out of their homes. This was the beginning of an unstoppable

The early 1900's were a time of turmoil for farmers in the United States, especially in the Great Plains region. After the end of World War I, overproduction by farmers resulted in low prices for crops. When farmers first came to the Midwest, they farmed as much wheat as they could because of the high prices and demand. Of the ninety-seven acres, almost thirty-two million acres were being cultivated. The farmers were careless in their planting of the crop, caring only about profit, and they started plowing grasslands that were not made for planting.

The prices of staple goods dropped dramatically from the1860s to the 1890s. The farmers were losing large amounts of money that they desperately needed. The tariff on manufactured goods vexed the farmers because even though their own profits were decreasing, the prices of important manufactured goods were not due to absence of foreign competition. The farmers were further bothered by the domestic marketing system which allowed numerous middlemen to take large shares of the profit of agriculture. There was a shortage of credit, which made it difficult to finance the construction of necessary improvements. The farmers were plagued by numerous natural disasters including tornadoes, floods, and droughts. These conditions, which could destroy property and crops, also provided a difficult environment to grow crops. If the crops could not be grown, the farmer had no means of supporting him and his family. After a boom in the mid-1880s, the population of western farm states increased enormously. This large influx of people contributed to the destruction of open-range cattle raising. A prolonged drought following these boom years devastated the farmers and many soon returned East with no money and low morale. Thus, farmers were dissatisfied with government policy and politicians began to discuss resolutions to their problems. Many farmers began to

The 1960s pushed farming to a new low. “federal agriculture policy continued to curtail surplus production and raise farm incomes, but it placed greater emphasis on guaranteeing low food prices” (Miller, 2011). Farmers were competing with other farms just to keep their farms and homes. The government implemented additional programs like the use of food stamps and the free school lunch programs, which further deemphasized the necessity for production for the farmers.

Between 1930’s and 1940’s, a great drought hit the southern west Great Plains. “Dryland farming on the Great Plains led to the systematic destruction of the prairie grasses.”(Congress). It affected farmers by destroying their crops. “Simply put, if farmers produced less, the prices of their crops and livestock would increase.”(Congress). In a way, the farmers were paid less. “In a time when many were out of work and tens of thousands were starving, this wastefulness was considered downright wrong.”(Congress). Without crops to feed people, people were starving. “Cotton, corn and wheat prices doubled in three years.”(Congress) Farmers approved this act.

At the turn of the 20th century, the United States had become the leading industrial power in the world, due to 19th century technological advances which escorted America out of an agrarian based economy and into the industrial revolution. However, this period of transition made life increasingly difficult for American farmers. For example, improvements to America’s railroads presented a competitive advantage to large crop producers while placing family farmers at a substantial disadvantage. Furthermore, the prices of crops such as cotton, once the keystone of America’s agricultural economy, were falling which made it more difficult for farmers to survive. Consequently, farmers were forced to mortgage their property. Although some of the farmer’s complaints about life in the early 20th century, such as national monetary policy were unjustified, railroads and other consequences of the industrial revolution posed serious threats to the way of life for farmers.

While one-fifth of the American population made their living on the land, rural poverty was widespread. Despite agricultural overproduction and successive attempts in Congress to provide relief, the agricultural economy of the 1920s experienced an ongoing depression. Large surpluses were accompanied by falling prices at a time when American farmers were burdened by heavy debt. Between 1920 and 1932, one in four farms was sold to meet financial obligations and many farmers migrated to urban areas. Restrictive immigration laws, aided by a resurgence of nativism in America in the 1920s, contributed to an atmosphere hostile to immigrants.

Most everyone has at least heard of the Great Depression that hit America by storm in the early twentieth century. Even though people are taught about the Great Depression, I personally think that a lot of people do not understand the severity that it caused and the livelihoods that it forever changed. The Great Depression, which lasted over a period of ten years, resulted in a lot of heartache for many nations worldwide (Fraser, 2010). As for the United States, the worst of the Great Depression harbored between 1929 through 1933 (Fraser, 2010). The Great Depression went down into history as being the worst traumatic economic moment for the United States (Paul Evans). It is still recognized for being the longest and severe depression that

Prices for goods fell as farmers grew too much crops and livestock more than the country needed at that time. Of course when, “at least one quarter of the American workforce was

The recovery-based Agriculture Adjustment Administration (AAA), was the first federal program to place a limit on agricultural production. During the World War One (WWI), agricultural production was very profitable for Americans because many European countries were unable to produce large amounts of agriculture, so American agriculture was always in high demand. After WWI ended, Europeans were able to begin to restore their agricultural industry; thus, making American agriculture in low demand. This caused items like corn to go from $1.20 per bushel to 26 cents per bushel. Not only agriculture prices retract back to prewar prices, but farmers began losing their land due to a decline in the earning power of

The roaring twenties was a time of economic boom, and with it came deflation of the dollar. This deflation hurt many farmers as their debt burden would increase as the buying power of the dollar increased. With this deflation profits were not increasing to meet this loss from the debt, crushing many farmers who would push for subsidies from the federal government to create a sense of security for the

President Wilson recommended a system of agricultural banks to provide credit to meet the needs of farmers. Congress responded with the Federal Farm Loan Act of 1916. During the Great Depression, farmers were unable to pay the expenses they were faced with and many of them left their farms in defeat. Congress stepped in by passing the Emergency Farm Mortgage Act of 1933 and the Farm Credit Act of 1933. The Farm Credit Act completely established the Farm Credit System. The FCS was under the administration of the Farm Credit Administration. All Government capital to the FCS was repaid by 1968, making FCS institutions wholly owned by their farmer-borrowers. FCA determined that its authorities and those of the FCS needed to be expanded to meet the changing credit needs of farmers and rural communities (“History of FCA and FCS”, 1).