Question

Which industry has a surplus that contributed to the quiet depression wich lead to a failing economy by the end of 1920s

Answer 1

Answer: Farming industry

Explanation:

The Quiet Depression of the 1920s was a precursor to the Great Depression of the late 1920s when farmers were not enjoying the prosperity that other people were enjoying. This is because they were producing more than they could sell thereby producing a surplus they were not benefiting from.

The farmers of the 1920s had made a killing when they dramatically increased production during the First World War in order to feed the soldiers on the front. With the end of the war, the farmers saw demand for their goods fall. Compounding this were 2 factors;

1. European countries had suffered greatly in the wars and so could not afford to pay much for goods so they demanded less.
2. The Fordney–McCumber Tariff of 1922 increased tariffs on foreign goods in the United States so high that many countries reacted by boycotting American goods.

This saw farmers selling less and the prices of their goods at an all time low due to oversupply thereby hiking their poverty levels in what was called, the Quiet Depression.