at this time began to gain in the market, they offered cars and prices to suit all tastes, whereas Ford continued to only produce the Model T in black!. The economic slump of the 1920's had a massive impact on the manufacturing industry.The Great Depression of 1929 until 1939 saw an economic slump in America. It was the longest and most severe depression to be experienced by America. The collapse of the stock market prices put a tremendous strain on the banks and financial services. The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and consequently the demand of production of automobiles. The result was drastically falling output and drastically rising unemployment. The slump in the American economy quickly turned into a worldwide economic slump owing to the relationship between American and Europe. After WW I America had emerged from the war as the major creditor and financier. Once the American economy slumped, the flow of investment credit to Europe dried up and this lead to a collapse in the European economy. All nations sought to protect their domestic production by imposing tariffs, raising existing ones and setting quotas on foreign imports, this reduced the amount of international trade. The agricultural sector faced it's own problems during this time.During the economic slump, agricultural prices dropped and farmers found themselves having to pay more for the goods than they could sell them for. However, the output of agricultural products did not decline as other industries did, this lead to stockpiles of foods and goods and added further pressure on the economy. The economy and agricultural industry needed a new direction to pull itself out of recession, and the new president Franklin D. Roosevelt promised a New Deal for the country. His New Deal was an amalgam of "alphabet" agencies (AAA, The Agricultural Adjustment Act ...
