Home

Modern World

The economy in the 1920’s: Problems in the economy

1) Uneven distribution of income
Industries centred in N.E. and Midwest other regions were mainly agricultural.

A) Old Industries in decline:
Coal threatened by development of new fuel e.g.. Oil
Cotton threatened by synthetic materials (e.g.. Raylon)
Railways threatened by motor transport.

B) Difference in income in 1929 in the north east the average income per head was $921 whereas in the south east it was $365.

C) Women - did not have improved career opportunities - by 1930 only 150 female dentists and less than 100 female accountants in the whole of the USA.
Women remained in low paid, menial jobs - 700,000 were domestic servants.
Number of women receiving college education fell by 5%
Women were expected to concentrate on marriage and homemaking .

D) Native Americans / Afro-Caribbean
- Native Americans placed on reservations which were infertile.
- Afro-Caribbean's = 10% of population - 85% lived in south
Many Afro-Caribbean's began to move north led to development of ghetto’s such as Harlem.


2) Farmers - 66% farms were operating at a loss
- had benefited from war years but now over producing
- Fordney - McCumber act - protect farms however hindered exports because other nations placed similar tariffs on USA goods.