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The USA 20s and Tensions, image - Coggle Diagram
The USA 20s and Tensions
Limitations to the American economy
Demand for industrial and agricultural products from the US had dropped as a result of European farming recovering
returning soldiers reentered the workforce which meant that many people especially women lost their jobs
increased number of black workers in industrial areas caused race riots where many black people were killed due to angry racist white workers
farmers who borrowed money for production struggled to pay back their loans as demand dropped
Benefits of the war to the economy
war created high demand for American goods so industries, farms + workers had huge growth
factory production in America grew by 35%, largest area of growth was the steel industry
natural resources, transport and consumer goods industries experienced major expansion
production on farms grew rapidly during the war as production in Europe dropped as most of the farmers had to leave to fight in the war
America supplied 30% of the world's wheat and 55% of its cotton for clothing
prices for their goods rose by 25%
avg income of farmers increased by 30%
farmers used machines on their farms - more efficient
more farmers took out loans to expand farms
number of people in work increased to 1.3mil during the last 2 years of the war
reduced unemployment
most workers benefitted from wage increases - unskilled worker wage increased by 20%
Reasons for Economic boom in the 1920s
