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How Did Ww1 Affect The Economy

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During World War 1, the demand of food was high. The US provided for not only their own soldiers, but also those of other nations, and even the civilians in the rampaged neighborhoods. The farmers had confidence and used the income from the government to buy more land and machinery on credit. Banks supported the farmers while the industry boomed. When the war came to an end, the demand dropped but the supply rose. The newly paved roads made transport from farm to market easier, but the oversupply worsened because of easy access. The supply and demand imbalance caused farmers to not get the price they needed for their crops; cotton would sell for 35ȼ/lb, but it plunged to 6ȼ/lb. This caused farmers to lose income and made it so they could not pay back loans from the bank, therefore causing banks to close and everyone in the area lost their …show more content…

The Farm Security Administration lent loans from the federal bank to keep farmers on their land and not force the banks into bankruptcy. It also kept famers on their land to make sure they did not migrate into the cities and look for work because there was no work for them so they would simply end up homeless. This Administration helped to teach bookkeeping through the loan procedures and this taught the citizens skills leading to them spending money wiser. The Conservation Program also helped to educate farmers about ways to protect their crops from wind erosion by planting trees and rotating their crops to let some of their plants die to replenish the nutrients in the soil. To help undo what the people had done to the land through over planting, overgrazing, and over deforestation, the Civilian Conservation Corps had three million people employed to rebuild roads, plant trees, replant plants across the Great Plains to help with erosion and loose

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