1. Reasons For The Boom

Question 1

List all of the reasons for the boom

There are 6 in total

Answer 1

WW1
The credit industry 
Mass production 
Republican policies
State of mind
Women

Question 2

How did WW1 help cause the boom?
Think about loans, sales, markets…
There are 4 points

Answer 2

• US joined late - weren’t suffering the damage like other rival countries
• America had loaned money to France and Britain, and we’re still profiting from the interest it generated
• Other countries were buying weapons, equipment and ammunitions from America
• Other countries were preoccupied with war, meaning that USA could steal markets from them, eg the chemical industry (previously dominated by Germany)

Question 3

How did the credit industry help contribute to the boom?

Answer 3

• Credit now meant that if people didn’t have the money immediately, they could pay it back over time, meaning that ordinary people could now buy things that had previously been out of reach

Question 4

How did mass production help create the boom? Think mainly about Ford.

Answer 4

Electricity was now used in factories to drive production

• Ford used the idea of the PRODUCTION LINE because it meant that he could hire unskilled workers, therefore paying them less
• Ford used STANDARDISATION - the Ford only came in one colour, so he didn’t need to waste money on materials that wouldn’t sell, and he could buy in bulk
• Ford helped create the cycle of prosperity - people got jobs in other areas, like rubber and metal industries, garages, petrol, road building etc.
• People saw adverts for the car and were encouraged to buy them, along with the pro,use of higher purchasing schemes and credit

Question 5

How did republican policies help create the boom?
Think about Harding, Coolidge, taxes, protectionism…
4 points

Answer 5

The republicans promoted RUGGED INDIVIDUALISM - the idea that people should look after themselves

• Gov favoured big businesses, so there was a lack of intervention
• Harding returned US to normalcy and Coolidge was nicknamed ‘silent Cal’ due to his lack of action
• Taxes were kept low, so people had more money to spend elsewhere
• PROTECTIONISM - tariffs were raised on goods coming in from abroad (Fordney-McCumber act) so they were more expensive, so people brought US goods and their industry was protected from foreign competition

Question 6

How did state of mind contribute to the boom?

Answer 6

Historians saw a shift in mindset following the war, many now felt that they deserved a bit of luxury, and were trying to keep up with her lives of their neighbours. They were also prepared to borrow large amounts of money

Question 7

How did women help contribute to the boom?

Think workforce

Answer 7

• In 1920, the 19th amendment gave women the right to vote
• Many joined the workforce, generating a surge of wealth
• They were spending less time at home, which created a demand for technology at home