America: 1.1 The Boom

Question 1

How did WW1 benefit the US economy? (AM 1.1)

Answer 1

• Isolationism.
• No wartime debts.
• USA loaned money, sold food and equipment, creating jobs.
• USA led in goods production, no war losses.

Question 2

How did republican policy benefit the US economy? (AM 1.1)

Answer 2

• Fordney McCumber tariff (high import taxes).
• Cut taxes, allowing more money to spend, more business/job creation.
• ‘Laissez faire’ businesses left alone to profit.

Question 3

How did growing industries and consumers benefit the US economy? (AM 1.1)

Answer 3

• US homes with electricity went from 15% in 1916 to 70% in 1927.
• Huge demand for ultra-modern household gadgets created jobs.
• Motor industry grew, using US steel, leather, rubber and glass, creating jobs.
• Mass production lead to cheaper goods.

Question 4

How did advertisements benefit the US economy? (AM 1.1)

Answer 4

• In billboards, newspapers and magazines. Caused boosted sales.
• Could use catalogues and deliveries, as well as ‘hire purchase plans’ to pay over time.

Question 5

How much did consumer goods sales grow from 1919 to 1929? (AM 1.1)

Answer 5

• Cars: 9 to 26 million.
• Radios: .06 to 10 million.
• Telephones: 10 to 20 million.
• Fridges: Multiplied by 167x.

Question 6

What was the assembly line? (AM 1.1)

Answer 6

• Introduced by ford in 1913.
• Quicker, cheaper way of making a car.
• Used electric conveyor belts.
• Model T Ford mass produced this way.

Question 7

How did car prices fall between 1911 and 1928?

How many people bought Model Ts in this time? (AM 1.1)

Answer 7

• Due to assembly line, fell from $800 to $295.

- 15 million.

Question 8

What impact did the motor industry have on jobs? (AM 1.1)

Answer 8

• For 1 factory worker, there were 10 making parts.

- Jobs on roads, building highways, oil refineries, petrol stations, roadside hotels and garages.

Question 9

What were the social impacts of the motor industry? (AM 1.1)

Answer 9

+ Sense of freedom. Could live far away and drive to work.

- Traffic jams, accidents, pollution.

Question 10

In 1926, how many cars were there? How many were Fords? (AM 1.1)

Answer 10

-20 million cars, half were Fords.

Question 11

How could a shareholder make money? What was buying on the margin? (AM 1.1)

Answer 11

• Receiving a share of company profits, selling there shares.
• Buying shares through loaned money.

Question 12

How many people owned shared in 1920 and 1929? (AM 1.1)

Answer 12

-4 million, becoming 20 million.

Question 13

What percent of people owned 1/3 of wealth? How many millionaires were there in 1927? What percent of families lived on under 1000 a year? (AM 1.1)

Answer 13

• 5%.
• 15,000.
• 42%.

Question 14

What issues did farmers face? How many lost their farms in 1924? (AM 1.1)

Answer 14

• In 1930, earned 1/3 of their income in 1920.
• Less demand for American imports, which were taxed.
• High tech machinery caused food prices to fall.
• 600,000 lost their farms in 1924.

Question 15

How did coal miners suffer? How did textiles factories suffer? (AM 1.1)

Answer 15

• Mines closed. Other fuels (oil, gas, electric) used more.

- Less demand for cotton and wool as synthetic fibres became popular.

Question 16

How did African-Americans and American-Indians suffer? (AM 1.1)

Answer 16

• Many were farmers, whole industry suffered. Very poor, could only find low paying city jobs.
• Land seized by miners. Forced into reservations with poor soil and poverty. Poor education and life expectancy.