The Agricultural Problem and Labor Unrest

The Agricultural Problem and Labor Unrest

1. The Agricultural Problem

• Overproduction and machinery lead to decreased prices. Farmers had too much produce and had to lower prices to sell it.  This caused some to re-mortgage land to avoid bankruptcy and others filed bankruptcy.  The wheat prices dropped so low they turned to making whiskey out of wheat.  (Also known as moonshine)  When prohibition was introduced they were forced to lower the prices even more. 
• The south and west were affected the most due to agriculture being their main industry.  Many farmers were unable to buy the "affordable" goods from the urban areas because of the reduction of their prices and being unable to make a large enough income. 
  

  

This is a music cover that shows how the farmers had been introduced to new improvements and that it greatly affected their lives.  The machinery and urban inventions, such as the assembly line and mass production, caused their overproduction. 



2. Labor Unrest

•  During World War I the factories were making war materials and not focusing on goods the common population needed.  During peacetime the factories couldn't automatically switch which caused the prices of goods to rise.
• Women had to give up the jobs they had in factories for soldiers that were coming back from war. 
• American Plan: a policy that allowed a refusal to negotiate with unions, caused union numbers to greatly decrease