1) BOOM: The Boom Flashcards
What are the two types of government in the USA?
State- based in the capital city of each state.
Central federal- based in Washington DC and overseas matters that affect the whole country (foreign affairs, the army etc.)
What is the US constitution?
A set of rules of how America should be governed (e.g the Bill of Rights which guarantees Americans a set of freedoms and rights).
Who made up American society?
First Americans (American Indians who lived in tribes before white European settlers arrived), early immigrants (white settlers from Europe from 1600s), new immigrants (wave from 1850 onwards from Eastern and Southern Europe and parts of Asia), African Americans (millions taken as slaves between 1600 and 1800).
What are the reasons for the boom?
Position in the First World War- isolationism allowed the USA to benefit financially from the war, Republican government (laissez faire, tariffs, low taxation), hire purchase, advertising and catalogues, mass production, consumer society.
What is the cycle of prosperity?
Mass production means goods are made more cheaply - more people can afford to buy goods - more employment to make goods - people have more money to spend on goods - advertising persuades people to buy - hire purchase helps people buy goods.
How did sales of consumer goods change between 1919 and 1929?
Cars- from 9 million to 26 million
Telephones- from 10 million to 20 million
Radios- from 60000 to 10 million
When did Henry Ford introduce the assembly line in Ford factories to mass produce the Model T Ford?
In 1913.
How did the price of the Model T Ford change between 1911 and 1928?
Cost nearly $800 in 1911 compared to $295 in 1928.
What were the social changes as a result of the mass production of the Model T Ford?
Sense of freedom- people could buy a house out of town and drive to work instead of living near offices and factories. However there were also traffic jams, accidents and pollution.
How can an investor make money from the stock market?
1) Receiving dividends each year from the company they bought shares for.
2) Selling their share for a higher price than they paid for it.
How could people afford to buy shares?
Buying on the margin- borrowed money from banks with a small deposit of 10%. They would pay the money back with the profits they made from buying and selling shares.
Why didn’t farmers benefit from the boom?
After the war there was less European demand for American imports, some countries put tariffs on US imports so demand fell abroad, high tech farming machinery meant food was overproduced so prices fell, couldn’t repay loans or pay mortgages so were evicted. Around 600000 farmers lost their farms in 1924 alone.
Why didn’t traditional industry workers benefit from the boom?
Coal mines closed as other forms of fuel (oil, gas and electricity) were increasingly used to heat homes and cook food. Less demand for cotton and wool as man made fibres like rayon became popular and the fashion for shorter dresses which required less material.
Why didn’t African American workers benefit from the boom?
Many worked on farms as labourers or were sharecroppers who rented farmland from a landowner. As the farming industry suffered, they were badly affected as they were already desperately poor. Many moved to cities to find work but could often only find low paid jobs.
Why didn’t American Indians benefit from the boom?
Large amounts of land had been seized by mining companies and they were forced to live in reservations. Soil was poor here so they couldn’t grow crops and lived in extreme poverty.
