Final answer:
The food market was over flooded with goods causing prices to fall sharply due to a combination of factors including increased supply, economic events, and government policies.
Step-by-step explanation:
The food market was over flooded with goods causing prices to fall sharply due to a combination of factors. One factor was the increase in supply, as more competitors entered the market, leading to an excess supply of goods. Additionally, economic events such as overproduction, over-speculation, and shifts in supply and demand also contributed to the fall in prices. Finally, government policies such as high tariffs aimed at stimulating domestic industry resulted in a collapse of global free trade, further impacting the market.
The value of agricultural goods dropped, leaving farmers unable to cover their debts, resulting in foreclosures and banks unable to sell the acquired farms. The collapsed market led to a cessation in production, widespread layoffs, and persistent financial system stress. Similarly, events like the early bread riots in the Confederate states during 1863 highlight how the focus on cash crops over immediate food needs led to scarcity and hunger in urban areas, further destabilizing the market.