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LONG TERM CAUSES OF THE GREAT DEPRESSION (SLOW DOWN (Labour Unions (The…

- - - - Income was distributed very unevenly throughout the country with those in the North east and far west enjoying the highest per capita incomes.
        
        This figure heavily contrasted with some in the south receiving and annual income of $2000 or less.
        
        75% earned less than the amount of Federal Bureau of Labour recommended.
    - - Old industries powered by coal and steam had been centred in the Midwest, and had been built on the basis of 19th century technology.
        
        Therefore the introduction of synthetic fibres lessened the demand for cotton and other materials, therefore decreasing the amount of jobs, and not being able to compete against new tech.
        
        The new industries such as the motor industry were also drawn to the south due to minerals and well established transport networks.
        
        This therefore meant that other regions had only sparse industrial development, and as such did not have the same amount of income as those in the north.
        
        This also meant that agriculture was still the major occupation for most of the country, especially in the rural areas, as they didnt have the resources to develop
    - - Employment was often unstable, due to the fluctuating demand for goods.
        
        43% had been jobless for over a month.
        
        WOMEN
        
        Women tended to remain in comparatively low-paid and often menial jobs.
        
        NATIVE AND AFRICAN AMERICAN
        
        These groups did not share in the prosperity.
        
        They were left unskilled and forced to operate in the casual
        labour market and farming.
- - - - After the inflation of prices during the war, the only thing left to do was for it to fall very low. From $2.50 to $1.
        This was because;
        
        Prohibition cut the demand for grain.
        
        The growth of synethtics fibres lessend the marker for natural materials like cotton.
        
        Technical advances means that more crops could be produced, meaning farm population fell by 5%, yet production increased by 9%.
    - - During the war the Government urged farmers to overproduced, yet did little in the aftermath to compensate.
        
        As such the Credits Act of 1923 funded loans to farms.
        
        This allowed for big agricultural businesses to accept to produce more effectively, meaning smaller farmers who couldn't afford debt were squeezed even more, producing less.
        
        The US placed huge tariffs on food imports, theoretically meaning farmers could produce and sell more.
    - - The biggest problem for farmers was overproduction. There was too much food, meaning prices were drastically lowered.
        
        The McNary-Haugen Bill was propopsed to relieve the overproduction, by attempting to sell it overseas.
        
        Coolidge vetoed this, as he wasn't sure whether it would solve the actual issue of overproduction, and didn't want sour foreign relations by dumping export.
        
        Overall Coolidge did little to relieve farmers from their distress, with more and more farmers closing up