Declining Industries

What was the decline in industries in 1920s America?

Although many American industries boomed in the 1920s, others struggled because of the changes to the economy.

Which industries declined in America during the 1920s?

A number of industries struggled in 1920s America:

• ❖ Shipbuilding.
• ❖ Coal mining.
• ❖ Railways.
• ❖ Farming.
• ❖ Textiles.

How did the First World War cause some industries to decline in 1920s America?

The end of the First World War spelled trouble for some industries that had grown during it.

• ❖ When the war ended, there was no longer such a high demand for ships, and the shipbuilding industry went into decline.
• ❖ The end of the war led to a drop in demand and in the prices of food, so many farmers struggled. Many had gone into debt to expand their farms during the war, and couldn't pay it back.

Which industries replaced those in decline in 1920s America?

Some industries in 1920s America went into decline because they were replaced by new goods and technology.

• ❖ The rise of the motor car and the building of roads meant less use of the railways.
• ❖ Cotton farmers and textile workers found that there was less demand for their goods as they had been replaced by new synthetic fabrics such as nylon and rayon.
• ❖ Less coal was needed as more homes and businesses were powered by electricity, produced by hydro-electric dams.

What social changes caused the decline of some industries in 1920s America?

Some industries were negatively affected by social changes in US society.

• ❖ Prohibition (the ban on alcohol) affected farmers who produced hops, apples, grapes and barley, which were no longer needed to make alcoholic drinks.
• ❖ As women's fashions changed and skirts became shorter, there was less demand for cotton and textiles.

What were the effects of declining industries in America in the 1920s?

When an industry went into decline, it meant that its workers suffered.

• ❖ Many found that their wages dropped.
• ❖ Workers either lost their jobs or found they were less stable, and experienced periods of unemployment.
• ❖ Strikes became more common and more violent.
• ❖ Because many areas were dominated by traditional industries, it was difficult for workers to find work in other sectors unless they moved away.
• ❖ Many of the workers in declining industries lacked the skills and training to find work in the new ones.

What were the causes of decline in the shipbuilding industry in 1920s America?

Shipbuilding was one of the industries that didn't benefit from the boom. When the First World War ended, demand for ships dropped and shipbuilders struggled to find work.

What were the causes of decline in the coal industry in 1920s America?

Many miners found their wages dropping as demand for coal dropped.

• ❖ The rise of electricity from hydroelectric dams meant that homes and factories were no longer heated or powered by coal.
• ❖ Oil and gas also replaced coal as fuel in homes and factories, leading to overproduction in the coal industry.
• ❖ Better technology meant that coal could be burnt more efficiently, reducing the amount needed.
• ❖ The decline of the railways meant that less coal was needed to power steam engines.

What were the causes of decline in the railway industry in 1920s America?

The use of the railways declined as more roads were built, and cars and lorries were used to carry passengers and freight instead of steam engines.

What were the causes of decline in the textiles industry in 1920s America?

The textile industry went into decline in the 1920s for a number of reasons.

• ❖ New synthetic textiles such as rayon and nylon, made by the chemical industry, started to replace cotton.
• ❖ New fashions meant that skirts were shorter and less material was used for clothes, so demand for textiles fell.

What were the causes of decline in the farming industry in 1920s America?

Agriculture in America suffered some of the most serious economic problems of the 1920s for a number of reasons.

• ❖ When the First World War ended, demobilisation meant that soldiers returned to their farms and demand for food from Europe fell. This meant that prices dropped, making life difficult for many farmers who had expanded their farms to meet the demand of the war years.
• ❖ Countries such as Canada and Argentina began to compete with the USA in the worldwide sale of grain.
• ❖ Prohibition was introduced, which meant that the production of alcohol became illegal. This reduced the demand for barley, apples, hops and grapes, which were used to make alcoholic drinks.
• ❖ The consumer society meant that people's food tastes changed. They preferred more luxurious food than cereal.
• ❖ The demand for cotton fell with new fashions and synthetic textiles, so cotton farming went into decline.
• ❖ Many farmers had begun to use new production methods and machinery to grow more crops. This led to over-production and meant that food prices dropped.
• ❖ The US government put tariffs on food imports from other countries. They retaliated by putting tariffs on American food, so it was harder for US farmers to sell their goods overseas.
• ❖ The use of machines, such as tractors, rather than horses meant that farmers had to buy fuel to keep their farms running.