Despite favorable surface conditions, there were throughout the 1920’s defects in the American

economy. First, some major industries did not experience the general prosperity which
characterized most of the economy. Meager farm income meant that farmers lacked purchasing
power to buy their share of the increasing output of goods and services. Coal, textiles, and
shoes were among other industries which suffered from low profit margins. Moreover, while
employment rose during the 1920¹s, the biggest gains were in the low-paid service trades rather
than in those industries where earnings were high. Furthermore, the condition of American
foreign trade was not as healthy as it appeared.

Despite favorable surface conditions, there were throughout the 1920’s defects in the American
economy. First, some major industries did not experience the general prosperity which
characterized most of the economy. Meager farm income meant that farmers lacked purchasing
power to buy their share of the increasing output of goods and services. Coal, textiles, and
shoes were among other industries which suffered from low profit margins. Moreover, while
employment rose during the 1920¹s, the biggest gains were in the low-paid service trades rather
than in those industries where earnings were high. Furthermore, the condition of American
foreign trade was not as healthy as it appeared.

Despite favorable surface conditions, there were throughout the 1920’s defects in the American
economy. First, some major industries did not experience the general prosperity which
characterized most of the economy. Meager farm income meant that farmers lacked purchasing
power to buy their share of the increasing output of goods and services. Coal, textiles, and
shoes were among other industries which suffered from low profit margins. Moreover, while
employment rose during the 1920¹s, the biggest gains were in the low-paid service trades rather
than in those industries where earnings were high. Furthermore, the condition of American
foreign trade was not as healthy as it appeared.

Despite favorable surface conditions, there were throughout the 1920’s defects in the American
economy. First, some major industries did not experience the general prosperity which
characterized most of the economy. Meager farm income meant that farmers lacked purchasing
power to buy their share of the increasing output of goods and services. Coal, textiles, and
shoes were among other industries which suffered from low profit margins. Moreover, while
employment rose during the 1920¹s, the biggest gains were in the low-paid service trades rather
than in those industries where earnings were high. Furthermore, the condition of American
foreign trade was not as healthy as it appeared.