Question

While American cities prospered, however, the overproduction of agricultural produce created widespread financial despair among American farmers throughout the decade, which was later blamed as one of the key factors that led to the 1929 stock market crash.
True or False?

Answer 1

Answer: True

Explanation: The Wall Street Crash of 1929 was a major stock market crash that occurred in 1929. It started in September and ended late in October, when share prices on the New York Stock Exchange collapsed. It remains the most devastating stock market crash in the history of the United States, considering how long it lasted and the full extent of its aftereffects.

Agricultural production was booming and there were good harvests in 1928 that had built up a mass of about 250 million bushels of wheat when 1929 opened. By May of the same year, there was also a winter-wheat crop of 560 million bushels ready for harvest in the Mississippi Valley. This oversupply caused a drop in wheat prices so heavy that the net incomes of the farming population from wheat were a cause for despair. This was one of the major causes of the 1929 market crash.