1920 Economy Flashcards
Which factors contributed to the economic boom
Consumerism, technological innovation and business methods, car industry, laissez faire government approach
How many homes had electricity by 1927
63% of homes
Average rise in wages
1923-1927 average of 8%
How many goods were sold through hire purchase throughout the 1920s
1/2 of goods
How much were companies spending on advertisements by 1929
3 billion dollars annually
What changed about advertisements
Used slogans and brand names rose in popularity such as Star Cigarettes, psychologists were hired to target ads to specific audiences
What was introduced to reflect government policy of protectionism and what did it do
Fordney- McCumberb Tariff 1922: introduced highest import duties to protect American industry from foreign competition
Positive and negative effect of the Fordney McCumber Tariff 1922
Positive- Us companies secured profit and did not have to fear competition from overseas allowing American industry to dominate the nation. Negative- acted as a barrier to healthy trade relation with Europe
What was the common Republican ideology of the time and its meaning
Rugged individualism: the belief in hard work, being self made and success through self determination
Impact on agriculture
Demand after war had decreased and trade overseas was limited due to tariffs
How did people afford consumerism
Tax reductions on corporations and low income tax with availability of credit/ hire purchase
Impact of electrification
Companies save money as it was a cheaper and more reliable source of energy, widened the scope for consumer goods
Impact of development of new technologies
Increased productivity and efficiency making more profit. Inventions such as conveyor belt and sewing machines
How many companies owned the nations wealth and what scale
By 1929, 200 corporations owned 20% of the nations wealth
How did business practices evolve
Cartels were able to fix prices, large corporations able to dictate output and price levels such as US Steel, management science allowed businesses to function smoothly and focus on targets, holding companies allowed companies to dominate industries
Increase in car production
1920-1929 1.9 million to 4.5 million
How many shares were sold in 1929
1.1 billion
What method did people use to buy shares and what did it allow
Buying on the margin allowed those who did not have money to pay full amount for a share to make a purchase and still make profit
What did Henry Ford introduce and what did it allow
Assembly line which standardised the car industry and increased productivity marvellously
What changed American landscape and lifestyle
Car- growth of interstate highways through the Federal Highway Act 1929, development of motels, restaurants and gas stations, expansions of cities and suburbs,connected markets cross country, independent travel
Which industries were stimulated by the car industry
Steel, rubber, glass, oil
How many jobs did the car industry provide
5 million
How much of petrol was consumed by the car industry
90%
By 1920, how many cars were on the road
4.5 million
