In the early 1920s, consumer spending had reached an all-time high in the United States. American companies were mass-producing goods, and consumers were buying. Technology was constantly improving, providing consumers the
opportunity to purchase items to make their lives easier. Radios, refrigerators, and washing machines were among the
new consumer items being rapidly purchased.
Rural Farmers Grow Angry and Desperate. During World War I, farmers worked hard to produce record crops and
livestock (to feed the troops). When prices fell they tried to produce even more to pay the debts incurred by investing
in more land seed and mechanized equipment, taxes and living expenses as well as the same consumer goods
urbanites invested in to make life "easier". improved farming practices and equipment making it easier to work more
land, farmers found it hard to reduce production. The resulting large surpluses caused farm prices to plummet. From
1919 to 1920, corn tumbled from $1.30 per bushel to forty-seven cents, a drop of more than 63%. In the early 1930s
prices of food dropped so low that many farmers went bankrupt and lost their farms unable to pay mortgages
In a FEW sentences; Make the connection -
How did the roaring 20's consumerism & consumption partially lead to the Economic Depression for both rural and
urban Americans ?