As we can see, the average annual industrial wages rose from $1158 (in 1919) to $1304 (in 1927), furthermore, the number of millionaires increased from 7000 (in 1914) to 35000 (in 1928). The key to American’s prosperity is foreign trade and new industries, America exported $500 million worth of goods, while imported 400 million worth of goods during 1926-30. As America earning more money, factories produce more, industrial production has increased by almost 80% since 1921. Less people are now living in poverty and ever before, since the number of unemployment decreased from 11.9 million (1921) to 4.1 million (1927).
However, not every American benefit from the boom in the early 1920s. In fact, more unemployment is created through the boom than new employment. Older industries such as farming, coal, leather and textiles suffered greatly. As we can see, the total US farm income dropped from $22 billion in 1919 to just $13 billion in 1928. In America, 60 million are involved in the farming industry, most of them unskilled workers who live in rural areas, once they were forced off their land, they migrated to cities where there was little demand for their labour. Furthermore, there was a strike in the coal industry in North Carolina, where workers were paid only $18-$9 for a 70hrs week (while most Americans considered that $48 per week to be a reasonable wage). Leather and textiles industry are facing serious competition from other countries where there are cheaper labours. While old industries begins to collapse, new industries such as car, telephone and radio are taking over, those ‘new industries’ requires less labour, seeing their production lines relies on machines.
The statement above states that “America today are nearer to final triumph over poverty than ever before in the history of any land.” This might be true, however, 42% of Americas are still living below the poverty line. Majority of the Americans’ wages did not increase on the same scale as company profits or dividends paid to shareholders. In Chicago, the problem is highlighted, when only three per cent of semi-skilled workers owned a car (while 29% owned a car in cities), and only one radio for every three householders in poorer districts of Chicago. Moreover, chain stores across America served mainly the middle-class, while poor Americans are being disregarded.
To draw the conclusion, I would say that, only a few Americans – such as shareholders and company owners – benefits from the economic boom, while majority of Americans are still under the poverty line. From my point of view, I feel that America still has got a long way to go to until the final triumph over poverty.
