Why did economic insecurity persist for millions of working families during the 1920s?

The 1920's was an economic prosperous time and is often called the "Roaring 20's." However, most of the prosperity was in the cities where jobs were plentiful. Rural farmers, however, were struggling. Farm prices fell by staggering rates in 1920 and 1921. Wheat, the staple crop of the Great Plains, fell by half. Meanwhile, the South's cash crop cotton fell by three-quarters. This hurt many farmers, especially because the borrowed loans to pay for new equipment. As a result, farm foreclosures increased significantly and at the beginning of the 1930's, 90% of all farms didn't have electricity. Overall, farm income fell by 21% and by 1929, the average annual income for farmers was $273, compared to the national average of $750.

In addition, investment soared because of innovation, easy credit, and the creation of the Federal Reserve. Investor confidence was what helped fuel economic growth during the 1920's. However, it also lead to the stock market crash of 1929 and the Great Depression because many banks lent out risky loans that couldn't be paid off and investors took the Federal Reserve ability to fix market issues for granted.

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