3.5 The 1920s Boom Flashcards
What was the price of a Model T Ford by 1925?
$400
This price was equivalent to what an average worker might earn in four months.
What was the main reason for the low cost of the Model T Ford in 1925?
Mass manufacturing
Electric production methods contributed to its affordability.
How many jobs did mechanisation take away each year?
About 2 million jobs
This reflects the impact of mechanisation on employment.
By how much did the American Federation of Labour lose membership?
1.7 million
This decline indicates challenges faced by labor organizations during this period.
By what percentage did wheat prices fall?
More than 50 per cent
This significant drop affected farmers and the agricultural economy.
What was the average annual growth rate of gross domestic product during this period?
2% per year
This growth rate was double the average increase in prices.
By what percentage did real wages increase?
30%
This increase indicates improvements in the purchasing power of workers.
How many films were Hollywood’s studios producing each year by 1929?
More than 500 films
This reflects the booming film industry during this time.
How many people went to the movies weekly by the middle of the 1920s?
50 million people
This number was equivalent to half the nation’s population.
What was a frequent event for ordinary people during this period?
Going to the movies
This became a common form of entertainment for the masses.
By what percentage did the number of employed women rise during the 1920s?
25 per cent
This increase reflects changing gender roles in the workforce.
What was notable about the number of speakeasies during prohibition?
There were more speakeasies than legal bars
This indicates the prevalence of illegal drinking establishments.
How many households had a radio by 1930?
12 million households
Radios served as a source of entertainment, news, and advertising.
What percentage of households had electricity by 1920?
60%
This marked a significant increase from only 12% in 1912.
Why did Ford increase the wages of his workers?
To prevent rebellion and enable them to buy the newest model
This strategy aimed to ensure worker loyalty and boost sales.
What were the key reasons for a boom?
- First world war
- Republican policies
- Consumerism
- Car industry
- Technology
- Credit
- Confidence
Why was WW1 a reason for the boom?
- Stimulated manufacturing and agriculture industries
- American exports in world markets while Europe was preoccupied
- Employment opportunities
- US loaned to Europe
Why were Republican policies a reason for the boom?
- No regulation in the stock market - allows for speculation
- Reduction in interest rates to boost big business
- Taxes kept low
Why was consumerism a reason for the boom?
- Growth in advertising
- Stimulated economy when people buy things
- Demand for goods that had once been seen as luxuries
- Growing urban population
Why was the car industry a reason for the boom?
- Subsidiary industries (steel, rubber, petroleum, construction)
- Price of car dropped
- Expansion of cities and development of suburbs - construction industry
- Development of roads
- More jobs
Why was technology a reason for the boom?
- Demand for electricity
- Mass production of goods such as cars
- New industries such as radios and vacuum cleaners
Why was credit a reason for the boom?
- Hire purchase
- People could buy luxury goods
- Increase in demand
Why was confidence a reason for the boom?
- People took credit out of the bank which stimulated consumerism
- Stock market grew in value
- Buying on the margin
What is a cartel?
A group of companies agreeing to fix output and prices in order to reduce competition and increase profits
What is a holding company?
Where one very large company obtains a controlling interest in smaller companies in order to control the market
What is consumerism?
An increase in the production of consumer goods on the grounds that high spending is the basis of a sound economy
What is hire purchase?
‘Buy now pay later’ a system of credit whereby a person may purchase an item by making regular payments while already having the use of said item
What is buying on the margin?
If people didn’t have enough money to buy a share, they would make the deposit, borrow the rest, wait until the value of the share had increased before selling the share, paying off the debt and having made an overall profit
What is an example of the rich businessmen profiting from Republican policies?
By 1929, the largest 200 corporations possessed 20% of the nation’s wealth
How many of the goods sold in the 1920s were paid for by hire purchase?
About half
How did the worth of the stock market change between 1925 and 1929?
From $27bn to $87bn
Which sections of society did not experience a boom?
- Farmers
- Those in rural areas
- African Americans
