1. Easter quiz- the economic boom Flashcards
What is the definition of the ‘economic boom’ of the 1920s?
A period of rapid economic growth and prosperity in the United States, characterized by increased industrial production, rising wages, and a consumer-driven society.
Name 3 consumer industries which boomed in the 1920s.
Automobile industry, Radio industry, Electrical appliance industry (e.g., refrigerators, washing machines).
Name 2 ways in which cities changed in the 1920s.
They grew rapidly in size as people migrated from rural areas for work. Skyscrapers and modern buildings transformed city skylines.
Name 2 ways in which home life changed for urban people in the 1920s.
New electrical appliances made housework easier and provided entertainment. Increased access to cars allowed for greater mobility and leisure opportunities.
Name 2 natural resources important for industrial growth in the 1920s.
Oil (for fuel and the growing car industry), Coal (for energy production, although its importance was starting to decline relative to oil and electricity).
How did the First World War help the American economy to boom? Name 3 things.
American industries supplied goods and weapons to Allied nations, boosting production. European industries were damaged by the war, reducing competition for American businesses. The war led to technological advancements that could be applied to peacetime industries.
What were 2 other Republican policies of the 1920s besides ‘laissez-faire’?
Low taxes (to encourage investment and spending), High tariffs (taxes on imported goods to protect American industries).
What does ‘laissez-faire’ mean?
A policy where the government keeps its involvement in the economy to a minimum, allowing businesses to operate with little regulation.
What is ‘buy now, pay later’?
Installment buying or credit, which allowed consumers to purchase expensive goods by making a small down payment and paying the rest in regular installments over time.
How many cars were made in 1929?
Around 5 million cars were made.
Name 2 other industries stimulated by the growth in the car industry.
Steel industry (for car bodies), Rubber industry (for tires), Oil industry (for fuel), Road construction industry.
Give 2 examples of advertising techniques in the 1920s.
Catchy slogans and jingles, Celebrity endorsements, Appealing to people’s desires for status and modernity.
What is mass production?
The production of large quantities of standardized products, often using assembly lines.
How did mass production help to cause the boom?
It made goods cheaper and more accessible to ordinary people, increasing demand and driving further production.
How did the American people’s ‘state of mind’ help to cause the boom?
A sense of optimism, confidence in the future, and a desire for consumer goods encouraged spending and investment.
Why was the economic boom unlikely to last?
Underlying economic weaknesses, such as unequal wealth distribution, overproduction in some sectors, and speculation in the stock market, created instability.
Name 3 groups of people who did NOT share in the boom.
Farmers (suffered from overproduction and falling prices), Unskilled workers (wages did not rise as much as skilled workers), African Americans (faced continued discrimination and limited opportunities, especially in the South).
Describe overproduction in the farming industry in the 1920s.
Farmers continued to produce large amounts of crops after World War I, but demand from Europe decreased, leading to a surplus of goods and falling prices.
Name 2 causes of overproduction in farming in the 1920s.
Increased production during World War I to supply Europe continued after the war ended, Mechanization (new machinery) increased the amount farmers could produce.
How many rural Americans were forced off the land in the 1920s?
Hundreds of thousands of rural Americans were forced off the land.
Name the older industries suffering from competition from new industries.
Coal industry, Railway industry (facing competition from cars and trucks), Textile industry (facing some competition from new synthetic materials).
What % of Americans lived below the poverty line in the 1920s?
Estimates vary, but a significant percentage, possibly around 40-50% of Americans, lived below the poverty line.
What % of Americans were unemployed during the 1920s?
The official unemployment rate was relatively low, generally below 5%. However, this figure doesn’t fully reflect underemployment and the struggles of those in declining industries.
Why did the % of unemployed people remain the same, even though business increased?
Increased efficiency through mass production meant that businesses could produce more goods with fewer workers. Some older industries were declining, leading to job losses that offset gains in new industries.
