What was a key reason for the post-war cash crunch in America?
1 Answer
The post-war cash crunch in America occurred after WWI as a result of high inventories of manufactured goods with no local buyers and a drop-off in exports, and falling prices for farm produce.
Explanation:
In contrast to the manufacturing and general economic boom that followed WWII in the 1940's, the years following WWI in the 1920's were characterized by reduced employment, lower wages and failing businesses.
More information is here:
http://www.u-s-history.com/pages/h1362.html
Farmers found that prices for their produce dropped after the war, and they tried to counter the drop by increasing output. Soon after the drought came, and along with overproduction and incentive for higher crop yields entire regions of America were turned into the dust bowl.
http://www.pbs.org/kenburns/dustbowl/legacy/
The cash crunch finally resulted in the stock market crash followed by the Great Depression.
https://en.wikipedia.org/wiki/Great_Depression
