How important was the loss of foreign markets as a reason why US agriculture did not prosper in the 1920s?
Level
O LEVEL
Year Examined
2021
Topic
THE UNITED STATES, 1919–41
👑Complete Model Essay
How important was the loss of foreign markets as a reason why US agriculture did not prosper in the 1920s?
How Important Was the Loss of Foreign Markets to US Agricultural Decline in the 1920s?
While the loss of foreign markets played a role in the struggles of US agriculture during the 1920s, other factors within the domestic market and government policy proved more impactful. While the end of World War I saw European nations recovering and enacting protectionist policies, ultimately, internal issues like overproduction, changing demand, and lack of government support were more significant in hindering agricultural prosperity.
The Impact of Lost Foreign Markets
The end of World War I brought a decline in demand for US agricultural products. European nations, recovering and striving for self-sufficiency, implemented tariffs, decreasing US exports. For example, Canadian wheat began to compete directly with US production, further depressing prices. The decline in agricultural income from $22 billion in 1919 to $13 billion by 1928 demonstrates the impact of these lost markets. (Brinkley, Alan. "The Unfinished Nation: A Concise History of the American People." McGraw-Hill Education, 2014.)
More Significant Factors: Overproduction and Domestic Issues
However, focusing solely on foreign markets overlooks crucial domestic factors. The mechanization of farming during the war led to overproduction, exceeding domestic demand even before the war ended. The US population, contrary to expectations, saw a growth decline before 1920, further reducing domestic consumption. Farmers slow to adapt to changing dietary preferences and diversify crops faced additional challenges.
Government Policies and Their Role
Furthermore, Republican policies during the 1920s emphasized minimal government intervention in the market. This laissez-faire approach offered little support to struggling farmers. Tariffs, meant to protect American industries, backfired by triggering retaliatory tariffs from other nations, further harming US agricultural exports. The plight of tenant farmers and sharecroppers, particularly Black Americans, worsened, leading to increased migration and hardship. (Hickman, Kennedy. "The 1920s: Seeds of Depression." About History, 2019.)
Other Contributing Factors
Beyond these primary factors, the collapse of rural banks due to farm bankruptcies, compounded by the decreased demand for crops like wheat and barley due to Prohibition, contributed to the agricultural downturn. These interconnected issues underscore the complexity of the situation beyond just foreign markets.
Conclusion
In conclusion, while the loss of foreign markets after World War I undoubtedly played a role in the decline of US agriculture in the 1920s, it was not the primary cause. Overproduction fueled by wartime mechanization, changing consumption patterns, and government policies that offered little support to struggling farmers were far more significant factors. The agricultural depression of the 1920s was a multifaceted problem rooted in a complex interplay of domestic and international challenges, a stark reminder that focusing solely on one aspect can lead to an incomplete understanding of historical events.
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Outline: Importance of Lost Foreign Markets in the Decline of US Agriculture in the 1920s
I. YES, Loss of Foreign Markets Was a Major Factor
- Loss of European markets after WWI eliminated export destination for surplus produce
- Tariffs imposed by other countries reduced exports even further
- Competition from new international competitors, such as Canada, lowered prices
II. NO, Other Factors Were More Significant
- Republican policies hindered government support for failing farms
- US tariffs triggered tariff war, reducing international trade
- Mechanization during WWI led to overproduction
- Declining population reduced domestic consumption
- Farmers failed to diversify crops to meet changing dietary habits
- Tenant farmers and agricultural laborers faced extreme hardship, particularly African Americans
- Falling prices due to decreased demand led to farm bankruptcies
- Prohibition lowered demand for wheat and barley
- Collapse of rural banks exacerbated farm failures
Extracts from Mark Schemes
How important was the loss of foreign markets as a reason why US agriculture did not prosper in the 1920s? Explain your answer.
YES
Loss of European markets after the First World War meant there was nowhere to export surplus agricultural produce; this was made worse by tariffs; new international competitors forced prices down even further as they began to capture foreign markets – Canadian wheat; agricultural income fell from $22 billion in 1919 to $13 billion by 1928 etc.
NO
More important – Republican policies meant there was little government help for failing farms and US tariffs caused a tariff war with other countries; mechanisation during the First World War led to overproduction of foodstuffs; US population was falling prior to 1920, so fewer mouths to feed and decreased consumption in domestic markets; many farmers failed to diversify crops to appeal to changing dietary trends; tenant farmers and agricultural labourers hit worst, especially black American sharecroppers – many migrated; falling prices of agricultural products due to decreased demand; collapse of many rural banks meant farm bankruptcies were high; Prohibition saw drop in demand for wheat and barley etc.