How Did The Competition Affect The Economy Of The 1920's
One of the most economically prosperous time periods in American history is the 1920’s, also known as the Roaring 20’s. This economic upturn occurred shortly after the conclusion of World War I and the short recession that followed the war. Some industries flourished during this time while farming became a cancer to the economy. To help the plight of the American farmer congress did as much as it could in passing legislative bills like the Emergency Tariff of 1921, the Fordney-McCumber Tariff of 1922, the Capper-Volstead Act of 1922, and the Agricultural Marketing Act of 1929. With these pieces of legislation in place the idea was to make the farming industry as prosperous as ever. Farming profits declines significantly after WWI due to
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These men basically continued the Emergency Tariff of 1921 by again raising tariffs on imported goods, mainly from Europe. This act not only raised farm product prices such as wheat and other products, but it also raised the price on farm equipment. This was due to the fact that Europe could sell similar equipment cheaper, but not with the tariffs in place that raised the prices of European products above domestic inflated prices. The U.S. continued to try and keep American money in America. This bill was heavily supported amongst the republican dominated congress and opposed by the majority of the minority democrats. The effects would too soon rise to the surface and help prove who was right in all of …show more content…
This act was interpreted to help farmers in almost any way, shape, or form by government intervention. This meant the government would “loan” money to farmers by buying their crops for them and storing them. This plan was more of a “feed me” strategy imposed by Representative Gilbert Haugen. Haugen was a congressman elected out of Iowa (strong farming state). This bill was sort of the successor of Haugen’s first bill to never make it as a law. Haugen proposed a farm relief act throughout the mid 1920’s which basically had the same principles, to buy the product from the farmers and either store it or export it at a loss. This bill was shot down many times and finally laid to rest in 1928 for good. That is when Haugen drafted this new bill which would do the same thing, but with a twist. The catch was that this bill would not directly lend currency to farmers. It would instead pay farmers for the crops they grew and store the surplus for them. This became increasingly dangerous as farm prices never bounced
These men basically continued the Emergency Tariff of 1921 by again raising tariffs on imported goods, mainly from Europe. This act not only raised farm product prices such as wheat and other products, but it also raised the price on farm equipment. This was due to the fact that Europe could sell similar equipment cheaper, but not with the tariffs in place that raised the prices of European products above domestic inflated prices. The U.S. continued to try and keep American money in America. This bill was heavily supported amongst the republican dominated congress and opposed by the majority of the minority democrats. The effects would too soon rise to the surface and help prove who was right in all of …show more content…
This act was interpreted to help farmers in almost any way, shape, or form by government intervention. This meant the government would “loan” money to farmers by buying their crops for them and storing them. This plan was more of a “feed me” strategy imposed by Representative Gilbert Haugen. Haugen was a congressman elected out of Iowa (strong farming state). This bill was sort of the successor of Haugen’s first bill to never make it as a law. Haugen proposed a farm relief act throughout the mid 1920’s which basically had the same principles, to buy the product from the farmers and either store it or export it at a loss. This bill was shot down many times and finally laid to rest in 1928 for good. That is when Haugen drafted this new bill which would do the same thing, but with a twist. The catch was that this bill would not directly lend currency to farmers. It would instead pay farmers for the crops they grew and store the surplus for them. This became increasingly dangerous as farm prices never bounced