Losers of the boom

• Farmers

  Farmers were producing too many crops and couldn't sell them. So, prices fell and farmers had to borrow money from the banks to be able to survive. More and more of them got into debt until they eventually had to sell their farms and leave. Many left to go wandering around America looking for any kind of work - these wanderers were called hobos.

  By 1928 half of all USA farmers were living in poverty. Since prices were so low, 600,000 farmers lost their farms in 1924 alone.
• What was the main reason traditional industries failed to respond to new mass-production methods in the 1920s?

  They could not compete with companies like Ford that were making good profits.
• How did the reduction in the powers of Labour Unions affect workers in traditional industries?

  Workers were unable to claim better wages and working conditions.
• What happened to coal prices during this period?

  Coal prices fell.
• What was the impact of falling coal prices on employment in the coal industry?

  Thousands had to be made redundant due to overproduction.
• What was another major industry affected by reduced demand during this period?

  Ship building.
• Why did the shipbuilding industry have to make thousands redundant?

  Due to a reduction in the demand for new ships.
• What new materials were being developed that affected the cotton industry?

  New synthetic fibres, such as rayon.
• Why did rayon become a popular substitute for cotton?


  It could be produced in factories with fewer workers needed.
• What were the key factors leading to the decline of traditional industries in the 1920s?


  • Failure to adapt to mass-production methods
  • Reduction in Labour Union powers
  • Falling prices in coal leading to redundancies
  • Decreased demand in shipbuilding
  • Emergence of synthetic fibres like rayon as substitutes for cotton
• What economic condition did African-Americans face in the southern states?

  They suffered economically and lived in immense poverty.
• Why did black people in the southern states primarily work on small farms?

  Because their ancestors had been slaves and they were often laborers or sharecroppers.
• In which states was segregation particularly impactful for black people?

  Alabama, Louisiana, and Mississippi.
• How did segregation affect the living conditions of black people?

  It forced them to live separately from white people, impacting their education, transport, and housing facilities.
• What facilities were black people not allowed to use in the southern states?

  They were not allowed to use the same toilets and water wells as white people.
• What happened to individuals who tried to improve the rights of African Americans?

  They were challenged and threatened by the Ku Klux Klan.
• What was a common response of black people to the oppressive conditions in the southern states?

  Thousands moved to northern cities like New York, Detroit, and Chicago to look for work.
• What challenges did black people face upon moving to northern cities?

  They had to live in ghettoes.
• What were the main factors contributing to the economic struggles of African-Americans in the southern states?

  • Segregation limiting access to resources
  • Historical context of slavery
  • Employment as laborers or sharecroppers
  • Living in immense poverty
• Native Americans


  Much of their land had been seized by mining companies and their traditional way of life had disappeared when they had been forced to move to reservations. The soil on these reservations was often so poor that it was nearly impossible to grow crops
• What were the social implications of segregation for African-Americans in the southern states?

  • Separate living conditions from white people
  • Different education, transport, and housing facilities
  • Restrictions on using public amenities
  • Threats from groups like the Ku Klux Klan
• Immigrants


  Many immigrants had not been educated and were willing to work in any kind of job for very low wages. Because of this, they endured more and more prejudice
• Inequalities of wealth


  The richest 5% earned 33% of all the money in America. Tax records from the US government showed that 21 individuals with an annual income of over $1 million in 1921, 75 in 1924 and 207 in 1926. There were an estimated 15,000 US millionaires by 1927. In contrast, 6 million families had an income of less than $1000 a year.