Aftermath Of WW1 - boom Years

Question 1

What does a Republican believe?

Answer 1

Similar to our conservatives.

• Laissez Faire - the Govt shd stay out of business and peoples lives as much as possible - business knew best. Govt to leave them alone. Prosperity came from business
• Low Tax - More money in people’s pockets so that they can spend it on what they like - The consumer cycle. Wealthy had £ to invest.
• Tariffs - tax on foreign imported goods. Helps US companies grow.
• Trusts - super corporations that dominated industry. Allowed the few to have control of big business - could do what they liked “captains of industry” - allowed monopolise (high prices, no competition). Said that they knew better than politician about what is best for US.

Question 2

How did the US capitalise on the dismal state of Europe?

Answer 2

Invested in new technology and raw materials.

This created a Second Industrial Revolution

Changed

• industry,
• transport,
• home life,
• cites, and
• peoples state of mind

Question 3

What happened to Farming in the US?

Answer 3

New technology -

machinery
equipment
Fertiliser

Increase in raw materials - but more unemployment so people moved to the cities in the north.

Eventually resulted in over production. Produced more than they could sell.

Question 4

What happened to the energy industry?

Answer 4

The US increased its us of electricity. Opened more power stations. US loved electricity.

Had electric light, electric products increased (consumer boom).

Made the old coal and steam industries obsolete.

But stilled needed petrol to run the new cars

Question 5

What s mass production?

Answer 5

Mass production is when factories produce goods by using machines and making people to the same job all day. Assembly line - people spaced along a moving belt.

This improved efficiency and allowed goods (such as cars - Henry Ford) be produced faster and cheaper - machines did a lot of the work - which resulted in them being more affordable to all - more sales (consumer cycle)

Question 6

How did the ordinary American people pay for the new consumer goods like washing machines and car?

Answer 6

They used credit / Hire purchase.

This allowed them to borrow money to buy goods and pay them off in instalments (weekly or monthly).

Buy - even if you cannot afford it. We will lend you the money and you can give us interest. Goods cost more…..but you have then now.

Question 7

Why was the US economy described as a - Consumer Society?

Answer 7

People wanted a better standard ex of living. They wanted to use the new electrical goods such as fridges, washing machines, vacuum cleaners, telephones and cars to make their lives better..

They wanted to BUY…

Question 8

How does a Consumer Society work?

Explain the cycle

Answer 8

(1) Boom in sales - (2) create a demand in the

factory - (3) more jobs - (4) higher wages -

(5) more credit available / more £ to spend -
repeat. … (1) Boom in sales

Question 9

What happened to the US when Europe started to recover from the war?

Answer 9

Europe started to rebuild its industry -

make its own goods -

unemployment was high so people worked for low wages.

Result = European goods cheaper then US goods.

Question 10

How did President Harding deal with the cheaper European goods in the US?

Answer 10

1. Ended policy of free trade in 1922. Introduced Tariffs - a tax on imported and exported goods.
2. Restricted immigration - WASP (close door). Only wanted people who supported the American way of life to live in the country.

Harding needed to protect the US consumer cycle.

Question 11

How did Harding stop free trade?

Answer 11

He introduced the Fordney-McCumber Tariffs (1922)

Tariff = a tax / duties.

The US put a tax on imported foreign goods making them more expensive - so people continued to buy American goods.

Tariffs on farming and factory goods.

Protect US from “unfair” European competition.

Question 12

When the US stopped free trade and put tariffs on foreign goods imported into the US, what did the European counties do?

Answer 12

They put tariffs on US goods exported to Europe so that it was harder to buy American goods.

This didn’t affect the US….. The US consumer boom continued….for a while……

Question 13

1921 - Who was the US President?

Answer 13

Republican - Warren Harding - became President in 1921.

Question 14

How did the US policy on immigration change in 1920s?

Answer 14

Before WW1 the US had an “open door” policy. Everyone was allowed in. US= melting pot. All nationalities became American.

After WW1 - Europe very poor. Everyone wanted to come to US but not necessarily stay. Many Russian, Asian, Jewish, Eastern Europeans wanted to earn £ to send home. Effect consumer cycle.

Plus had different political views, cultures, religions - undermined the American way of life.

Question 15

Who are the WASPs?

Answer 15

White Anglo Saxon Protestants (WASP)

The most powerful and wealthy group in US. Mainly British ancestors.

Very influential in Congress (US parliament)

Question 16

What laws were introduced to limit immigration?

Answer 16

1921 - Govt introduced system of immigration quotas.

Ie. Only 3% of of total number of people from counties like Russians, who lived in the US in 1910 were allowed into the US in 1921. This limited non-WASP people as not many lived in the US in 1910.

1924 - fear of radicals = more restriction

The National Origins Act - now only 2% of those who lived in US in 1890 were allowed in.

The Asian Exclusion Act - said Asians could not become US citizens.

Reflected mood of isolationism,

Question 17

What is the Red Scare?

Answer 17

Reds = Russian / Eastern Europeans.

New immigrants - many communists (state rules and everyone the same) - opposite to Republican beliefs (no Govt inference - work hard, get more)

Scared of more strikes and riots as workers demanded more from employers.

Blamed Communists and radical groups like anarchists. Not completely unjustified. Many immigrants did hold radical beliefs. Wanted to overthrow the Govt.