Kimberly Ranola 11T
- “Did everyone benefit from the boom?”
Surely Americans economic stability of the boom beneficially favoured the inhabitants of America. It would be awkward to say otherwise, considering the roaring twenties showered many Americans especially the rich, speculators who decided to invest into the stock-market to buy and sell shares, entrepreneurs (rugged individuals), occupation in the mass production sector. It all seemed to good to be true.
Unquestionably, there was a vast mass of those who laid in abundance of the boom becoming opulent in the aspect of finance. For instance, people such as employers who could pay low wages with no strong unions to protect workers, shareholders who earned dividends, buying and selling shares made profits for business. Those that were employed into fine jobs only paid low taxes. Literally everybody was permitted to take out bank loans despite their personal financial stability and some invested in that way throughout the boom.
As a consequence of the bank allowing everyone to take out loans, farmers weren’t able to pay off the debt made. This was because, although farmers began inheriting from crops in their farming land, the land began to dry up. In hope that they would be able to sell crops at a more expensive price, this plan to gain profit and money imminently failed. However, banks still managed to fulfil the obligation of farmers owing them back, so they confiscated the house of farmers leaving farmers scavenging for scraps in the streets. Industry also took it’s toll on farmers, as the demand on crops and vegetables massively decreased and competition was hot, as their were more and more people becoming farmers. As yet another result of the significant changes in industry, electricity became a major necessity that of which farmers couldn’t afford to own, thus they weren’t able to manufacture the new products that were roaring in the new market.