1920-1945 Economic Flashcards
how many cars were ther ein 1919, and how many in 1929?
19=9m
29=26m
what are the 4 steps to the cycle of prosperity?
more sales=more production=more wages=more spending
what were the 6 key causes of the boom?
Automobiles Cycle of prosperity Consumer goods/credit Entertainment Stock market Skyscrapers
who was the secretary of the treasury and what did they do that promoted the boom?
Andrew Mellon
low taxes, balanced budget, minimal government intervention
give 4 republican economic policies?
LF
Tariffs
Low taxes
Trusts (cartels)
how had ww1 helped the American economy?
- loans to europe
- selling weapons/food
from 1922 how much did the gdp grow each year?
2%
how much did real wages raise from 1922?
30%
how did Ford influence industry?
- assembly line meant cars could be made in 1hr 33mins (down from 13 hours)
- prices decreased (1908=$850, 1925=$290)
- $5 a day wages meant workers could buy more
how many jobs did mechanisation cost each year?
2m
how much did wheat prices fall by?
50%
give 5 causes of the WSC?
over production unequal distribution of wealth high import tariffs on US goods in other countries reps. didn't regulate banking/business speculation on the stock market
how many banks went out of business by 1933?
5500
how much did industrial production drop by due to wsc?
45%
how many people were unemployed in 1932?`
13m
apart from trade, what caused the depression to become global?
americas demand for nations to repay loan debts even when they couldn’t afford to
what was the 1932 Glass-Steagal act?
tried to pump gov money into the economy
what did the federal farm board do?
provide loans to farmers co-ops
what did the Grain Stabilisation corp. do?
stabilised the price of wheat
how much did hoover allow congress to spend to try and create jobs?
$2.1b
give 3 points regarding the budget during the first new deal?
- no deficit budget
- cut gov pay 15%
- borrowed and spent millions on new deal, but on things designed to pay back
what 2 things prevented banks closing failing businesses before they had a chance to borrow from the federal reserve board?
farm loan act
bankruptcy act
what did the AAA do?
paid farmers to take fields out of production to stop overproduction and drive up prices
what was the NRA?
blue eagle
2.5m firms joined
cut production+good wages
what put more adults into work?
abolished child labour
give 3 ways fdr impacted the currency?
- people had to deposit gold in banks
- gold price up from $20/ounce to $35/ounce
- made banks give all gold to federal government
what 2 alphabet agencies did the SC deem unconstitutional?
NRA
AAA
did the new deal end the depression?
no, it was ww2 (Ward’s favourite sentence that)
how much material was exported to the Allies during ww2?
$50b worth
did the us receive payment for war goods?
no, but still greatly stimulated the economy
what % of the war contracts did the 100 leading firms have?
80
how many americans were involved in war factory work?
14m
how many women joined the workforce during ww2?
7m
