20s Economy Flashcards
What new consumer industries were created?
Motor car, refrigerators, radios
What things did the Republican government do to encourage the boom?
Laissez Faire, low taxes, high tariffs on import, kept trade unions weak so companies could save money on employment
What was higher purchase?
Paying by instalments on goods made prices more affordable to the masses
How much did the price of a motor car fall in the 1920s?
From $860 to just $260 by 1924
How many motor cars were manufactured in 1929? What made this possible?
4.5 million
This was thanks to the production line and mass production which made manufacturing cheaper and quicker
How much did industrial production rise in this decade?
50%
How did WWI affect the US economic?
Damaged the USAs competition as fighting took place over seas, allowed USA to take over some industry, made other countries reliant on them for trade, encouraged mass production
How much did incomes rise by?
25%
How did weak trade unions help to create an economic boom?
It allowed business employers to keep down wages and increase working hours, ensuring company profits increased
How many man hours did it take to produce a model-T Ford?
Just 1.5 hours
What effects did a booming motor car industry have?
It increased demand in other industries like steel, glass and oil
Which two industries didn’t benefit from the boom?
Coal mining suffered as electricity and oil became more commonly used for heating.
Textiles industry suffered as new innovations such as NYLON meant demand for traditional materials decreased
Why did agriculture suffer?
Following the war American farmers were still producing large amounts but as the war was over the demand was gone and so overproduction forced prices down.
Struggled to sell abroad due to retaliation tariffs in Europe
Which raw materials did the USA possess?
Coal, iron ore, oil and fertile land
