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With new technologies, farmers were producing huge amounts of food more easily than ever before. This overproduction led to demand falling, which dragged the prices down as well. To make things worse, many farmers thought that making yet more food would give them a higher profit, but it simply pushed the prices lower...
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Also, a vast area of farm land (the Tennessee Valley) was turning rapidly into wasteland as it was flooded and dried out constantly by the weather. To top off the economical and agricultural problems, big tariffs were set on imports and exports. This discouraged people from selling and buying abroad, but created problems when no-one in the country wished to buy goods...
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How Did Roosevelt Solve The 1930'S Usa Economic Crisis?
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