Prosperity & Depression 1897 - 1933 “What goes up, always comes down.” 1897 - 1910 -- 13 years...
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Transcript of Prosperity & Depression 1897 - 1933 “What goes up, always comes down.” 1897 - 1910 -- 13 years...
Prosperity & Prosperity & DepressionDepression1897 - 19331897 - 1933
““What goes up, always comes down.”What goes up, always comes down.”
1897 - 1910 -- 13 years of unbridled 1897 - 1910 -- 13 years of unbridled growthgrowth
– farm prices rosefarm prices rose–successfully reduced much of the successfully reduced much of the drudgery of farm workdrudgery of farm work
–parity rate was favorableparity rate was favorable–ratio between farm price and ratio between farm price and non-farm goodsnon-farm goods
Formula for the Good Formula for the Good LifeLife
Good Life = Good Life = f f (hard work, thrift, saving, (hard work, thrift, saving, investment, and right thinking)investment, and right thinking)
Golden Age of AgricultureGolden Age of Agriculture 1910 - 1914 1910 - 1914 basebase years for Parity comparisons years for Parity comparisons
World War IWorld War I 1914 - 1918 1914 - 1918 increased demand increased demand 1920 - farm prices doubled 1920 - farm prices doubled
Doubling of farm pricesDoubling of farm prices
– bid up land prices -- 70% increase 1913 - 1920bid up land prices -- 70% increase 1913 - 1920
1918 War ends--agriculture enters a 1918 War ends--agriculture enters a recession and in 1920 there was a collapserecession and in 1920 there was a collapse– farm prices fell by 50%farm prices fell by 50%– wave of farm bankruptcieswave of farm bankruptcies
1929--nation enters an economic depression1929--nation enters an economic depression– 1929 - 1933 durable good production fell 80%1929 - 1933 durable good production fell 80% farm income declined 40%farm income declined 40%
The BIG The BIG PicturePicture
1897 - 1920 Prosperity
1920 - 1933 Depression
1897 - 19331897 - 1933The Beginning of The Beginning of
Scientific AgricultureScientific Agriculture
3 Essential Components3 Essential Components1) The discovery of scientific relationships1) The discovery of scientific relationships
2) The development of new technologies 2) The development of new technologies based upon these scientific based upon these scientific relationshipsrelationships
3) The adoption of new technologies on 3) The adoption of new technologies on farmsfarms
1865Civil War ends
1897
1920
1918WWI
1940-1945 WWII
1929-1932 Great
Depression
The Ups and Downs The Ups and Downs of the Farm Economyof the Farm Economy
Conservation of Conservation of Natural ResourcesNatural Resources
18911891 50 million acres of timberland set aside 50 million acres of timberland set aside19011901 President Theodore Roosevelt elected President Theodore Roosevelt elected19011901 Bureau of Forestry (US Forest Service) Bureau of Forestry (US Forest Service)
established established19071907 150 million acres into National Forests 150 million acres into National Forests19071907 Became accepted principle that it was Became accepted principle that it was
the the proper function of federal government proper function of federal government to carry out public works programs to carry out public works programs
to to control stream and river flows control stream and river flows
Foundation of Foundation of Assistance for Assistance for
AgricultureAgriculture
18621862Morrill ActMorrill Act
Homestead ActHomestead Act
USDA createdUSDA created
Chronic problems of farmers• credit • markets both addressed by Country Life Commission--1908
Farm Loan Act -- 1916
Capper Volstead Act -- 1922
Farm Bloc -- major initiatives -- 1920-21•Packers & Stockyards Act
•Futures Trading Act
•Emergency Agricultural Credit Acts
•Farm Loan Act revisions
In response to economic hardship, farmers first sought to organize
•Grange Movement -- cooperativesSecondly they turned to Congress for assistance
•Farm Bloc•Joint Commission of Agricultural Inquiry -- Henry C. Wallace
•Peek-Johnson -- Equality for Agriculture•McNary-Haugen
•“hunkered down”-- The Great Depression•New Deal•WW II•Technology
Journal Question:Journal Question:
What conditions led to the What conditions led to the “Golden Age of “Golden Age of Agriculture”?Agriculture”?
Will we ever reach such a Will we ever reach such a situation again?situation again?
#4
ResponsesResponses
Ignore/deny problem and minimize its Ignore/deny problem and minimize its impactimpact
Blame is a collective character flawsBlame is a collective character flaws
Blame the victimBlame the victim Emphasize developmentEmphasize development
– CommunityCommunity– RuralRural– EconomicEconomic
ResponsesResponses
Agriculture support programs and policiesAgriculture support programs and policies– Target pricesTarget prices– Deficiency paymentsDeficiency payments– Income paymentsIncome payments
Welfare programsWelfare programs– Food stampsFood stamps– Unemployment benefitsUnemployment benefits– ADCADC
Push for improved efficiency and Push for improved efficiency and productivityproductivity– Drive for industrializationDrive for industrialization
Poverty and Poverty and IndustrializationIndustrialization
In a response to declining or stagnate In a response to declining or stagnate conditions agriculturalist turned to conditions agriculturalist turned to industrialism emphasizing productivity, industrialism emphasizing productivity, efficiency, and outputs (Yields)efficiency, and outputs (Yields)
Implication of IndustrializationImplication of Industrialization– Increase use of purchased (off-farm) goodsIncrease use of purchased (off-farm) goods– Increase capital inputsIncrease capital inputs– Decrease labor requirementsDecrease labor requirements– Increase use of TechnologyIncrease use of Technology– Increase outputs (and therefore surpluses)Increase outputs (and therefore surpluses)
Consequences of Consequences of IndustrializationIndustrialization
1.1. Decline in labor Decline in labor – TechnologyTechnology– Capital intensificationCapital intensification
2.2. Completive LossesCompletive Losses– Some farmers are ill-equipped to handle change or Some farmers are ill-equipped to handle change or
new complexitiesnew complexities– Unable to respond well enough to upturns in economyUnable to respond well enough to upturns in economy
3.3. Discriminating policies or the residual effects of Discriminating policies or the residual effects of past discrimination on groups common in rural past discrimination on groups common in rural areasareas
– American IndiansAmerican Indians– BlacksBlacks