Tariffs and Farmer Prosperity in the 1920s
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How important were tariffs as a reason why farmers did not share in the prosperity of the 1920s?
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Tariffs played a significant role in why farmers did not share in the prosperity of the 1920s, although they were not the sole reason. The imposition of tariffs on imported goods and foodstuffs had a detrimental impact on American farmers during this period.
One important aspect was that foreign markets began a tariff war with the USA, resulting in retaliatory tariffs imposed on US food exports. European countries, unable to sell their goods in American markets, could not earn the necessary dollars to buy US produce. This led to overproduction of food in the USA and subsequently a drop in food prices throughout the 1920s. The decrease in profits caused by the tariffs meant that many farms were unable to meet their financial obligations, resulting in repossession by banks as loans and mortgages could not be paid off. This economic pressure led to a significant decline in the number of farmers, with around one million fewer farmers between 1920 and 1930.
However, it is essential to recognize that while tariffs played a role in undermining farmers' prosperity, there were other contributing factors. Foreign competition from countries like Canada and Argentina also impacted the American agriculture industry. Additionally, changes in food consumption patterns in the US post-World War I, such as increased demand for fresh fruit and vegetables, made it challenging for smaller farmers who were unable to diversify their crops.
The aftermath of the war also saw a loss of European markets due to demobilization, leaving the US with excess food that could not be exported. Furthermore, advancements in machinery and farming technology increased production levels, leading to market saturation and further exacerbating the issue of overproduction.
Prohibition laws also had a significant impact on farmers, particularly cereal farmers who traditionally sold their grain for alcohol production. The drastic reduction in barley consumption due to Prohibition laws further strained the agricultural sector during this period.
In conclusion, while tariffs certainly played a crucial role in the struggles faced by American farmers during the 1920s, it was not the only factor. A combination of foreign competition, changing consumption patterns, market saturation, technological advancements, and other legislative factors all contributed to the challenges experienced by farmers in sharing in the economic prosperity of the decade.
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**How important were tariffs as a reason why farmers did not share in the prosperity of the 1920s? Explain your answer.**
YES – Tariffs imposed taxes on imported goods and foodstuffs. Foreign markets began a tariff war with the USA and did the same to US food exports after the war. European countries could not sell in US markets and therefore could not earn dollars to buy US produce. This caused overproduction of food produce in the USA and a drop in food prices throughout the 1920s. It led to a drop in profits and many farms repossessed by banks as loans and mortgages could not be paid. There were 1 million fewer farmers between 1920 and 1930, etc.
NO – More importantly: foreign competition from countries like Canada and Argentina. Patterns of food consumption were changing in the USA after the war – there was greater demand for fresh fruit and vegetables, and many smaller farmers were unable to diversify. Demobilization after the war meant European markets were gradually lost and the US was left with excess food. New machinery and farming technology boosted production. The US market became saturated. Prohibition laws hit cereal farmers who sold grain for alcohol – barley consumption fell by 90% between 1920–33, etc.