How important were tariffs as a reason why farmers did not share in the prosperity of the 1920s?
Level
O LEVEL
Year Examined
2022
Topic
THE UNITED STATES, 1919–41
👑Complete Model Essay
How important were tariffs as a reason why farmers did not share in the prosperity of the 1920s?
How Important Were Tariffs as a Reason Why Farmers Did Not Share in the Prosperity of the 1920s?
The 1920s were a period of economic boom for many in the United States, but farmers did not share in this prosperity. While tariffs played a role in their struggles, other factors were arguably more significant. This essay will examine the impact of tariffs and other contributing factors to assess their relative importance.
The Impact of Tariffs
Tariffs, taxes imposed on imported goods, undoubtedly impacted American farmers. The Fordney-McCumber Tariff of 1922 and the Smoot-Hawley Tariff Act of 1930 raised tariffs to protect American industries, including agriculture. However, this protectionist policy backfired.
European nations, facing their own economic woes and retaliating against American tariffs, imposed similar barriers against US agricultural products. This tariff war constricted international trade. European countries, unable to sell their goods in the US market, lacked the dollars to purchase American agricultural surplus. This contributed to a glut of produce in the US, causing prices to plummet and hurting farmers' incomes.
The consequences were severe. As described in "THE UNITED STATES, 1919–41, History Essay," overproduction led to a decline in farm income and an inability to repay loans. Consequently, many farmers lost their farms to foreclosure. The number of farmers in the US declined by 1 million between 1920 and 1930, highlighting the severity of the agricultural depression.
Other Factors Affecting Farmers
While tariffs played a part, other factors were arguably more impactful in the farmers' plight:
⭐Foreign Competition: Countries like Canada and Argentina increased their agricultural output, providing stiff competition to American farmers in international markets.
⭐Changing Consumption Patterns: Americans were shifting towards a diet with more fresh fruits and vegetables. Many smaller farmers, focused on single crops like wheat or corn, found it difficult to adapt to these changing demands.
⭐Post-War Overproduction: During World War I, European demand for American produce was high. After the war, European agriculture recovered, and demand for American goods fell, leaving the US with a surplus.
⭐Technological Advancements: New technologies like tractors and combines increased production efficiency, but also led to oversupply and further price drops.
⭐Prohibition: The ban on alcohol sales devastated farmers who grew grains for brewing and distilling. "THE UNITED STATES, 1919–41, History Essay" states that barley consumption fell by 90% between 1920 and 1933, demonstrating the impact on grain farmers.
Conclusion
In conclusion, while tariffs did contribute to the struggles of American farmers during the 1920s, they were not the primary cause. The combined effects of global competition, changing consumer habits, overproduction fueled by new technologies, and Prohibition dealt a more significant blow to the agricultural sector. The focus on protectionism through tariffs, while well-intentioned, ultimately exacerbated the problem by hindering access to foreign markets and triggering retaliatory measures. Therefore, it was the confluence of these factors, rather than tariffs alone, that largely explains why farmers did not share in the prosperity of the Roaring Twenties.
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Outline
- Tariffs were a significant factor contributing to the disparity between farmers' lack of prosperity and the economic growth of the 1920s.
YES, Tariffs
- Tariffs increased the cost of importing goods and foodstuffs, negatively impacting foreign markets and limiting the profitability of exporting US agricultural products.
- Reduced demand for US agricultural exports due to retaliatory tariffs imposed by foreign countries led to overproduction and a decline in prices.
- The drop in profits made it challenging for farmers to repay loans and mortgages, resulting in widespread farm foreclosures.
- The number of farmers in the United States decreased significantly during the 1920s due to financial struggles attributed to tariffs.
NO, Tariffs Not as Important
- Other factors, such as increased foreign competition from countries like Canada and Argentina, played a more significant role in the agricultural crisis.
- Changing dietary habits in the United States, leading to a preference for fresh produce, negatively affected smaller farmers unable to adapt.
- Demobilization after World War I reduced demand for US food exports, resulting in excess production.
- Technological advancements and new machinery increased agricultural production, saturating the market.
- Prohibition laws adversely impacted cereal farmers who relied on grain sales for alcohol production.
Extracts from Mark Schemes
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.