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The farming industry was one of the first industries to feel the effects of the Great Depression in the early 1920's when prices for their produce dropped sharply after World War I
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- 1. LACK OF DIVERSITY IN THE ECONOMY-1920's economy was transitioning from railroads/textiles to new markets, so auto/construction bridged the gap ... but people couldn't afford autos/construction due to beginning of Depression, so economy fell apart - not enough DIVERSITY2. UNEQUAL DISTRIBUTION OF WEALTH-business owners from the 20's had all the $$, but bottom half of America coudn't make a liveable wage - they didn't pay the lower workers enough3. INSTABILITY IN BANKING SYSTEMFarms were starting to default due ot new technology - so rural banks failed, then larger banks failed, then stock market ...4. US PLACE IN THE WORLD ECONOMYGermany couldn't pay us backEurope had their own agriculture and didn't need US as much
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