America - 1.4 Flashcards

1
Q

constant features of standard of living

A
  • average life expectancy rose
  • white people had a consistently higher life expectancy (1915 men had a LE of 48, non-white men it was 33 years)
  • the wages are higher for white men as well (on average double in 1939). this reflects many were in higher earning jobs
  • the monthly wages for farm workers are a reminder that the standard of living varied widely
  • the average wage for a no-white person was about one quarter of the earnings of a white man)
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2
Q

home ownership 1917-41

A
  • 1920, about 6,700,000 people owned their now houses, 12,900,000
  • the 1940 census listed about 19,600,000 renting homes and 15,200,000 home owners.
  • the facilities in each house also improved
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3
Q

sanitation 1940 census

A
  • only about 2.6% of homes had no toilet of any kind while 59.7 had indoor flushing toilets
  • not white people in rented housing in cities were most likely to have shared facilities
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4
Q

electricity 1940 census

A
  • 48.8% of homes cooked by gas and only 5.4% by electricity
  • 42% of homes had central heating, 11.3% had no heating at all
  • 44.1% of homes had an electric fridge
  • 82.8% of people said they owned a radio
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5
Q

did people spend more money in the 1920s?

A
  • more anymore people shopped in chain stores rather than small local stores (by 1929 retail chains were selling 21.9% of all goods)
  • some chains such as J.c.Penny spread to all states selling household goods and furnishing. this helped to create an American culture making people feel at home in any state
  • by 1940 the standard of income had clearly increased as people only needed to spend 21% on food (in1930 this was 24%) (15% of this was spent on eating out which was more expensive)
  • household market boomed in the 1920s and 30s. Roosevelt set up the rural electrification administration in 1935 to get electricity to rural areas (in 1939 ran over 100,00 miles of new power lines)
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6
Q

health 1917-40

A
  • death rates for fatal diseases such as smallpox and TB dropped steadily (rise in 1930s as people couldn’t afford to pay medical bills)
  • gov invested more into providing free healthcare for those who couldn’t afford it. this made people more likely to go the doctor so health improved
  • in 1917, over 3 million was spent on healthcare, by 1940 it was 32 million
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7
Q

education 1917-40

A

in 1917 just 27% of all children ages 14-17 were going to school, by 1940 it was 73%

  • this was before the baby boom so suggests that by 1940 many more children were being sent to school than sent out to work
  • labour legislation in 1938 included stopping children under 14 woking in most non agricultural jobs. farming was often an exception as they worked while being registered for school
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8
Q

what impact did the second world war have on a consumer society

A
  • the war reduced consumer spending as industry shifted to war production
  • it was patriotic to scrimp and save, to eat less bread so more wheat could be exported to the allies in Europe
  • once the war ended industry returned rapidly to the production of peacetime goods as the post war economic boom led to a burst of consumerism
  • there were an ever widening range of choices, in a range of styles and colours
  • constantly updating goods made people buy them more frequently. advertised emphasised ‘new’ and ‘improved’ targeting specific groups of people. this was helped by the TV and sponsorship
  • a new policy called built in absence meant machines were made less sturdy more quickly and so they would need replacing more often
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9
Q

the impact of the TV on the consumer society

A
  • to begin with they were very expensive, the screens were small and you could only get reception in New York area
  • by 1960 85%, this was partly explain by more homes having electricity and reception
  • in 1948 there were 16 broadcasting station, by 1954 there were 354.
  • they brought entertainment into the home, meaning families went out less. staying in saved finding a babysitter and saved the journey to the movies
  • because more people were staying in, pre-cooked dinners gained popularity . for example Betty Crocker’s cake mix which was quick, easy and produced reliable results
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10
Q

the consumer as targets

A
  • manufacturers became more specific with who they targeted
  • the toy industry are rapidly, helped by developments in the plastic industry (plastic toys were cheaper than steel ones)
  • products aimed at children were advertised around children’s programmes, targeting their pester power with their parents, not the parents themselves. in 1955 Davy Crockett (TV hero) outfits made $100 million from sales of just the racoon skin caps of their outfits
  • women targeted for their pester power with labour saving devices and men for cars
  • women were also targeted for domestic appliances, choosing the brand of milk, juice and coffee and therefore which grocery stores to visit
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11
Q

post war consumerism

A
  • after the war people ate and drank more, craving the foods they had been deprived of during the war (fat, sugar, meat)
  • growth of synthetic food industry (artificial sweeteners) coconut cola made £55.7 million before tax in 1950 and this grew considerably by 1959
  • people were eating far less healthily than before the war
  • the 1950s saw the first big studies into the effects that food, drink and smoking had on health. by the early 1960s, there were reports about the health effects of smoking and too much cholesterol
  • women were much more likely to feed their babies formula milk, especially the types that had vitamins in. this made it easier for working women to share the care of their babies. not even non-working women were encouraged to use formula because of the added vitamins and because it was easier to measure a baby’s intake
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12
Q

teenage consumption

A
  • significant consumers in the 1950s, in 1959 said to spend $10 billion a year
  • transport was 38% most of which was car related. many started to trade in models every few years for upgraded designs. this created more second hand cars for the teenage market
  • clothing and sports accounted for 24%. teenage girls consumed more clothing and cosmetics than the both (%20 million on lipstick alone) boys on sporting equipment
  • food and drink accounted for 22%. they ate about 20% more than adults and when eating out they ate huge amounts of ice cream and drank lots of milk, boosting the dairy industry. they ate in new drive ins, producing cheap and fast foods
  • 16% went to entertainment. they spent $75 million on records. from the 1950s moving makers started to target teen audiences with high school films and a range of cheap gores movies such as the blob in 1958
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13
Q

teenagers and transistor radios

A
  • made a huge impact due to their portability
  • teenagers primarily wanted them to listen to pop music
  • first TR-1 went for sale in 1954, it was expensive and wasn’t very small
  • a Japanese company then miniaturised the transistor radio by using tubes and these miniature radios were far more popular
  • in 1959 alone, the USA imported six million
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14
Q

was standard of living in 1960 better than 1940?

A
  • census measures changed
  • they still measured home ownership but they also took into consideration the facilities within
  • in 1960 about 63% of people owned their own homes compared to 44% in 1940
  • 85% had a bath/shower and a flushing toilet
  • electricity supplies were no longer recorded, (only 1.7% of homes had no heating all)
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15
Q

problems faced by non-white Americans

A
  • throughout the 1960s and 70s it was harder for non-white Americans to get a job and if they were they were automatically paid less
  • affirmative action from Roosevelt onwards was slow coming and often caused resentment. people thought they were chosen for their race, not their abilities
  • some non-white Americans did live in the suburbs (most significant were black American suburbs at just over 4%)
  • hispanic groups were still moving largely into the cities.
  • about 12% of white Americans and 41% of non-white Americans were living below the poverty line, many lived in the inner cities but also some areas of extreme rural poverty
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16
Q

inner city housing

A
  • much inner city housing was subdivided and rented. as rents fell, landlords failed to repair their properties and even burned them down to claim insurance or left them to rot (e.g. South side Chicago)
  • most residents turned to crime, drugs or both as they felt angry and helpless towards their situation
  • by the 1970s many were locked in a downwards spiral of decline (South Bronx in New York was in a hispanic ghetto and in the 1970s well over half of the families were on welfare)
  • the number of deliberate fires increased in the 60s and 70s (most set by landlords to get federal building grants)
  • housing commissioner, Roger Starr set out a policy of planned shrinkage, closing social amenity, leaving people even worse off. this was soon adopted in other cities
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17
Q

federal government anti-poverty policies

A
  • Kennedy outline his new frontier policies but these weren’t passed before he was shot
  • Johnson introduced his great society policies to fight a ‘war on poverty’.
  • set up an independent agency with over 130 staff and budget of over $960 million, the run the policies and report directly to him
  • he stressed poverty was the enemy not poor people themselves
  • congress didn’t pass all the bills that the Johnson administration presented, yet they were extended to cover more people (more wide ranging than the new deal)
  • scale was immense, funding though significant was no enough
  • community action programmes (CAPs) could make a big difference (often organised by women), collected data on the biggest local problems and presented projects to solve them
  • one project in Memphis focused on high infant mortality and so set up free clinics that offered advice for before and after birth
  • some projects failed as competition to gain funding led to racial tension and violence (blacks and hispanics in LA)
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18
Q

criticisms of the great society

A
  • programmes weren’t helping people out of poverty, they were encouraging them to stay on welfare
  • particularly vindictive against non white single parents (seen a shaving babies for welfare) and black men (seen as deriving for behind inner city riots)
  • tailored towards non-whites
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19
Q

Nixon’s anti-poverty policies

A
  • shifted the focus of federal aid to the working poor, old, children and disabled, all of whom received extra aid
  • dismantled the Office of Economic Opportunity in his first year. this was a long progress as many were funded for several years. when this expired many couldn’t replenish their finds and so couldn’t be sustained
  • did pass anti-poverty legislation, enlarging the food stamps programme and making federal gov administer it (more efficient)
  • linked social security payments to inflation meaning the buying power of them stayed the same
  • emphasised ‘workfare’ not ‘welfare’ granting credit linked to earnings in the year. this only helped those who could find work and this was difficult for many
  • Nixon administration setup family planning advice and resources. this relief on people using the contraception that was provided
  • rationalised welfare benefits by combing them.
  • growing support for reduced welfare payments
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20
Q

Jonnie Tillmon

A
  • was a welfare campaigner in LA
  • protested agains the stereotype of the single parent as a welfare scrounger
  • gave evidence to congress about the problem of trying welfare to work when single parents were often seen as undesirable workers
  • NWRO didn’t get the FAP overturned, it did get changes at state level (e.g. outlawing raising homes unpronounced)
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21
Q

carter’s anti-poverty policies

A
  • wanted to help both working and non-woking poor without raising budget costs
  • in 1978, the national consumer cooperative bank was set up, to give loans to co-operative organisations, largely in urban areas
  • lent money to small organisations who would struggle to fund start up businesses, helping the working poor to improve their position
  • rural development fund was set up just before carter’s defeat in 1981, giving loans to rural communities to provide electrification and facilities. this only helped the working poor and the areas that received funding
  • in last two years introduced tax cuts, trying to manipulate the money supply
  • his measures might have worked but the public had lost faith in his policies and competence. he was also unpopular in congress
  • this was exploited by Reagan who offered change at a time when people wanted it.
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22
Q

to what extent was there no leisure time in the years 1917-40?

A
  • tended to be the benefit if the middles classes.
  • most people still worked long hours and had little disposable income
  • during the Great Depression, the situation of many got worse as many people lost their homes and jobs
  • many who lost their homes lived and travelled in their cars. most people went to the cities, as the growing number of Hoovervilles in the 1930s suggested.
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23
Q

leisure industry 1917-45

A
  • eating out became a popular leisure activity (e.g. illegal speakeasies)
  • the amount of choice varied from place to place, based off town size but also location in America
  • the cinema industry grow considerably. in 1930 Ny had hundred of cinemas ranging from 50-seaters in black areas to luxurious Roxy, built to hold over 5000 people
  • other areas were less well off. out of all the towns n North Carolina, only 3 had more than once cinema
  • in the south they were segregated. black people were only allowed to sit in the balcony seats
  • the explosion of the movie theatre created an unemployment boom for workers in the movie industry, the building industries and the service industry
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24
Q

leisure time outside

A
  • booming car industry and improved road systems meant that people could get to national parks to hike and camp
  • they wanted a back to nature experience
  • a growing number of amusement parks competed to give children the most fun and the scariest roller coster ride.
  • kiddie parks became increasingly popular (first built in San. Antonio, Texas providing gentle rides for small children and daring rides for older ones
  • the radio industry and the book market grew rapidly, especially with the arrival of cheap paperbacks in the later 1920s. Book sales fell during the Great Depression however
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25
Q

spectator sports

A
  • sport coverage in the newspaper increased
  • even before 1917, cigarette manufacturers were producing cigarette cards of famous baseball teams for fans to collect
  • as popularity rose, the number of spectators did too, American football Rose Bowl stadium, built in 1923 for an audience of 57,000 had to be enlarged in 1928 to hold 76,000
  • in the 1920s, Americans could watch professional baseball, horse racing, backing, basketball etc, certain sports like wrestling were seen as theatre sports
  • radio broadcasts of baseball games increased popularity. it was organised into major and minor leagues
  • yankees were most popular, star player being Babe ruth. attendance topped a million in 1920
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26
Q

what impact did the radio have on spectator sports?

A
  • radio coverage sold sport and sport sold radio
  • a rematch of the allegedly rigged Jack Dempsey v Gene Tunney boxing match was broadcasted on the radio in 1927. in the weak before one New York department store sold $90,000 worth of radios
  • in 1934 the baseball league sold broadcasting rights to Ford motor company. some teams (e.g. St Louis Basketball) began to refuse to allow local radio companies to broadcast their matches as it would prevent spectating (avoid price of ticket)
  • ticked sales went after once radio stopped broadcasting (this could be for other reasons like improved standard of play)
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27
Q

sports stars

A
  • babe ruth (yankees baseball player) had his salary quadrupled between 1920-1930
  • examples of how succession sport could change lives. (came from a low income background)
  • significant number of sportsmen came from working class families (Gene Tunney, the boxer was the sun of an Irish immigrant dock worker)
  • black Americans couldn’t play in white baseball leagues until the 1940s. there were segregated leagues (in 1920 Rube Foster set up the national negro baseball league which was the first professional league for black teams)
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28
Q

the second world war and sports

A
  • leisure time came second to the war effort
  • significant restrictions on leisure imposed by wartime conditions (e.g. night-time baseball leagues were stopped to save electricity). travelling to games also became more difficult
  • national football and baseball teams were told to keep playing to keep up morale as long as players joined the military of called up
  • the quality of games suffered as players went off to fight
  • women took over their positions, starting many sports teams
  • the all American girls professional baseball league played from 1943-54, creating audience of over 1600. once men returned women’s teams collapsed
  • they never reached the same scale even at their peak
29
Q

changes in income 1945-80

A
  • the 40 hour working week and wage regulations boosted leisure time and spending power
  • more white collar workers than blue collar and about 40% of married women were working, supplementing the family income
  • labour Saving devices cut down on house work
  • one average spent 1/6 of their income on leisure
  • poorer families could still use the radio to listen to sports or eat out in cheap fast food places
30
Q

leisure industry 1945-80

A
  • more people went to college and their book industry boomed. paper back market became widely available and book sales rose by 11.3%
  • baby boom meant that family leisure became popular (Disneyland opened in 1955)
  • the suburbs sprouted family entertainment (e.g. bowling alleys and golf courses). because the suburbs tended to be segregate by income, even the cheapest areas had variations fo these facilities in their cheapest form
  • shopping became a leisure activity
  • 1980, technology for home computers and internet had improved. they were expensive, slow and needed to be self programmed.
  • Bill Gate’s Altair 8800 cost $297 but people who bought it had to learn basic computer language
  • only middle class families could properly enjoy them
31
Q

spectator sports 1945-1980

A
  • football and baseball leagues moved south and west
  • new stadiums built for larger audiences
  • could benefit a wider cohort of people
  • by the 1980s, a vast range of sports were being televised and this led to a drop in sports attendance as people could see and hear them in their own homes. many also had better views that they would have in a stadium
  • sports sponsors raised audience numbers by corporate entertaining
32
Q

what were the industrial effects of the car?

A
  • factories expanded and employed more workers
  • the industries that produced spare parts (glass, steel, ribber) also increased production. the need for workers pushed wages up
  • cars needed petrol to run and mechanics to maintain (1929 there were 120,000 filling stations, by 1967 there were 216,000)
  • car mechanics workshops and car dealerships sprung up along the road
33
Q

what impact did the car have on roads and mobility?

A
  • roads improved and expanded as people could travel more widely. in 1960 21.5% of people had no car, in 1980 it was 12.1%. this increased connectivity
  • people could travel more widely. Diners and motels sprung up along the side of roads (1958, 56,000 motels)
  • national travel had been possible before by train but this was less exact and didn’t always take people where they wanted to go
  • could travel further, faster and cheaper
  • this gave rise to travelling salesmen who worked in larger and larger areas. door to door deliveries by lorry not goods trains
  • the removal truck made it easier to move homes
34
Q

how did the car impact shopping and tourism?

A
  • allowed for the development of shopping malls (e.g. Southdale was the first air-conditioned, covered mall opened in 1956)
  • between 1960-80 about 30,000 malls were built growing in size every year
  • tourism grew as people could make trips to major cities
  • they could go camping and hiking in national parks
  • people began to look for favourite chains in diners and motels (denny’s grow into a nationwide diner chain
35
Q

how did the car impact entertainment?

A
  • growing number of national drive ins. people liked it as they didn’t have to dress up (some took their children in pjs)
  • there were play areas for children and child friendly foo
  • very popular with teenagers and often showed low budget movies
  • drive in movies did well even thought the industry as a whole was losing out to the television
  • drives ins were disadvantaged by the climate. they thrived in areas where it was warm and dry such as California
  • by the 1950s it was the dream to have new car ownership so manufacturers aim was to try and get people to buy a new one each year, bringing out new models and shapes or even ‘improved performance’
  • it worked as the umber of cars kept growing
36
Q

problems with the car

A
  • as they got cheaper it was the very poorest Americans that still couldn’t afford them and suffered the most
  • life without a car became increasingly difficult as non-car transport infrastructure shrank (rail only worked if wanted to go from city to city and it was expensive so was a rare option)
  • greyhound buses carried millions of passengers but conditions were crowded and journeys slow. exacerbated income divide
  • by 1970s cities had too many cars, pollution was rising and protests against this were too. the two fuel crises lead to rationing and rising prices
  • prices never regained their old low level which meant those at the bottom of the car ownership ladder were pushed off it and onto public transpor
37
Q

early air travel

A
  • came later than the car
  • offered flights from 1915 (seaplane flew from St Petersburg to Georgia- 18miles in 23 minutes) but carried one passenger at a time
  • the cabins were unpressurised so couldn’t fly higher than 10,000 feet as passengers often fainted
  • smoking was allowed and caused fires/accidents, scaring people away
  • 1925 Kelly Act laid out national routes for mail delivery
  • people started to travel more frequently on the mail planes and as more people flew and survived, popularity rose.
  • western Air express who carried just over 200 passengers in 1926, flew over 25,000 in 1929, increasing mobility
  • by 1940 so many trying to book it took a travel agent up to 90 minutes
  • very expensive so wasn’t until after SWW commercial act travel truly took off
38
Q

air travel after the SWW

A
  • jet engine had been invented and radar had been discovered allowing pilots to fly in bad conditions
  • system developed that allowed bombers to refuel mid flight
  • the Boeing 707 which could carry up to 181 people became the first passenger jet at speeds of 550 miles an hour. the rising demand made them more cost efficient
  • Cold War money for technological field development funded these advancements
  • the rise in aeroplanes was dangerous (e.g. two passenger airlines crashed over Grand Canyon in 1956)
  • led to federal aviation administration in 1958 to run our traffic control
39
Q

who benefitted from air travel?

A
  • middle class professionals and the wealthy flew regularly
  • it meant people could take jobs further away and commute to them by plane, people travelled further around the county
  • number of foreign tourists entering the country increased. this trumped the long and expensive boat journey previously used. people couldn’t afford to waste the journey time there and back
  • Americans explored their own country (in 1970 over 2 million foreign. visitors compared to over 8 million in 1980)
40
Q

deregulation of air travel

A
  • 1978 Airline Deregulation Act ended federal government control over the various airlines, including ticket prices and routes
  • the CAB had controlled pricing but airlines had to compete in the service they provided and how often they flew
  • 1970 many flying half full to offer more flights per day
  • deregulation allowed many to lower their prices and cut services
  • new low cost airlines were set up in competition to with the established airlines helping to pull ticket prices down further
  • Reagan used this to show the efficacy of removed regulations in his campaign
  • had long term problems, however
41
Q

post ww1 depression - farming

A
  • during the war, farmers were urged to produce more wheat and were given subsidies to do so
  • mechanisation meant fewer workers were needed, so more became unemployed
  • after thaw war prices fell meaning some farmers had to sack workers whilst others went bankrupt,
  • boll weevil (a beetle that eats young cotton plants
42
Q

post ww1 depression - industry

A
  • there were many sticks in 1919 and 1920, local and nationwide
  • most failed to get better conditions and some caused businesses to fail increasing unemployment
  • by 1900 coal had produced almost 90% of energy supplies in the US, by 1930 this had dropped to 60%
43
Q

post ww1 depression - government reaction

A
  • republican gov believed in laissez faire policies so didn’t try to stop the depression
  • tariffs led to economic retaliation so exports fell but also to buy more nationwide goods
  • the gov thought the depression would sort itself out. it did and this had a significant impact on government thinking in 1929 when another depression struck
44
Q

post war boom - mass production

A
  • breaking manufacturing down into a series of steps and making one worker responsible for one step in the process
  • Henry Ford is the most effective example of this - goods could be produced quickly and cheaply so could be sold for less
  • because they were more affordable, more people bought them (in 1917 there were just over 4 million cars vs 23 million in 1929)
  • had knock on effects as jobs were created in the outlets to sell them, transportation for deliveries and spare parts for specialists to fit
45
Q

facts about Henry ford

A
  • in 1914 cost $825
  • Ford paid his workers $5 a day (double most industrial workers)
  • ford banned unions to keep his workers under control, taking advantage of gov laissez faire policies
  • ford production demonstrated the main issue of the boom. success was driven by consumer spending but once people had one, demand dropped
46
Q

post ww1 boom - new management techniques

A
  • some employers used scientific management ideas (Fredrick W Taylor) to make the production line workers as effective as the production line itself
  • each was broken down into a series of movements and the workers trained in the most effective way to do that task
  • system worked best when trained workers stayed at the factory so advised paying good wages and having good woking conditions
47
Q

post ww1 boom - federal policies and purchase schemes

A
  • while the gov generally avoided intervention in business, it kept some subsidies in place to encourage ‘buying American’
  • before the was, borrowing was seen as a last resort and only banks/ land companies did so
  • in 1920s companies advocated hire purchase as being most practical. companies sent out huge catalogues premixing easy payments
  • consumer debt rose from 7 billion to 7 billion from 1920-1929
48
Q

post ww1 boom - changing industry

A
  • new industries were more efficient and used more mechanisation
  • older industries like textiles became less important than manufactured consumer goods
  • the boom couldn’t really take off until the electricity grid was reaching enough consumers (in 1917 there were 7 million homes with wired electricity vs 24 million in 1930)
49
Q

the stock market

A
  • the price of shares in new industries rose rapidly (had previously been reserved for banks)
  • as share prices rose, the media pointed out the possibility of making money even if you bought just a few and sold them a short time later
  • shares went into their own boom cycle called a bull market (when share price rises and people expect this to continue)
  • people bought on the margin (buying shares with borrowed money)
  • gov did nothing to stop this
50
Q

stock market bust

A
  • crashed in 1929
  • there were warning signs that the boom was over (most peopled bought the consumer goods so demand fell, companies didn’t cut production enough so goods piled up in warehouses, by 1927 unemployment was rising)
  • republican gov did nothing as the depression in 1919 had put itself right. yet, more people were in debt
  • Federal Reserve Board attempted to control the boom by tightening the money supply, this made it worse
  • the media started to talk of a crash but had people kept their heads, the market may have stabilised. people rushed to sell
  • a bear market replaced the bull market (prices shares fall and people expect this to continue)
  • about 1/3 of all banks before the crash were bankrupt nay 1933
51
Q

depression recovery

A
  • Roosevelt closed all the banks, have FED to inspect them and allowed 5000 ‘healthy’ branches to reopen
  • this began to establish confidence
  • natural disasters hampered recovery (drought in 1930s made the Great Plains a dust bowl, many farmer s lost their farms and became migrant workers)
  • Roosevelt ran up high gov debts to fund the new deal
  • 1937 Wagner-Steagnall National Housing Act set up the federal housing administration to oversea slum clearance and the building of houses for low income families
  • Second Agricultural Adjustment Act, like the first provided subsidies for farmers to produce less
  • there were still more people than federal agencies could help
52
Q

Great Depression

A
  • worsened the depression as businesses and banks went bankrupt, and also lost their homes
  • homelessness and poverty for many
  • Republican congress was unwilling to act, some measures were out in place, but not enough
53
Q

post war affluence - industry

A
  • huge demand for consumer goods meaning production increased from $213 billion worth of goods in 1945 to $284 billion in 1950, helping to keep unemployment low
  • gov came down hard on strikes for higher wages as prices rose. (e.g. when coal miners strike, Truman took control of the mines and the same in a rail worker strike).
  • he asked ochre to draft strikes into the army, they backed down and were very few strikes over this
  • continued farm subsidies led to prosperity for farmers
54
Q

post war baby boom

A
  • growing demand for child centred goods and foodstuff
  • in 1947, nappy sales were $32 million vs $50 million in 1957
  • birth rate rose by over 1 million between 1940-50. stayed at the 4 million mark until 1965 when it started to decline again
  • more babies meant more teenagers to come creating a need for schools and colleges
  • in 1960 31% of the population were under 15
55
Q

post ww2 government spending

A
  • rose steadily throughout the period under Truman’s fair deal policies
  • immediately after the war, the government provided support for all those leaving military service (leaving payment, unemployment pay for a year, loans to buy homes and medical care)
  • provided education to training through the GI bill
  • gov increased the amount of social security benefits. the 1949 National Housing Act introduced sum clearance and the building of over 810,000 low income ousting units to replace the slums
  • this provided construction work and improved conditions for the urban poor
56
Q

post war growing affluence

A
  • inflation meant that prices were rising sometimes faster than wages
  • Office of Price Administration had controlled prices during the war. When it shut down in 1946, prices jumper 25 percent in two weeks
  • after the initial jump ,prices settled
  • Truman passed the 1946 employment act which set up a council of economic advisers to advice the president on managing the economy
  • had to give a strategy report fo the house of representatives and the senate after each federal budget
  • kept taxes low and the fact that buying on credit was rising meant that inflation didn’t damp down spending in the 1950s
  • fed put controls on the money supply to keep inflation low
57
Q

1950s

A
  • fuelled by men returning home from war, women working and a buoyant economy
  • whilst the economy climate was good, there were always people who were not a part of the rising affluence.
  • one reason for growth of suburbs were people moving from inner cities as was seen as increasingly slum-ridden
  • consumer confidence was vital and it hid the underlying problems
58
Q

the suburbs

A
  • social amenity moved outside the cities where there was more land
  • government funned the building of road and homes (1956 Highways act allowed for 41,00 miles of interstate highways)
  • boom economy meant builders were willing to invest
  • Levitt company specialised in mass produced, pre-fabricated houses (quick and cheap to build) leading to an explosion of Levittowns in NE
59
Q

suburbs example

A
  • Long Island development had 17,000 homes for 82,000 residents
  • cheaper homes made them more affordable for the masses
  • Levitt refused to sell to black Americans as did some other developers. this led to the construction of black suburbs (example of northern segregation)
60
Q

post war shifts in the economy

A

-by the end of the 1950s, the USA was losing its place as the country of technological innovation and its hold of world markets
-America designed the first transistor radio, but it was the Japanese that miniaturised it
-shift in industry from NE to SW (sunbelt region) mainly due to wartime investment (aircraft manufacture and military bases were cheaper in the south)
the development of good air conditioning made the area more attractive and more people retired there
-population shift helped to empty the inner
-previous economic strategy was high gov spending even if it created a budget deficit. after the war, this didn’t work, the gov wanted to keep interest rates low so increased the money supply (hold inflation down, this was successful as in 1953 170 billion in circulation by 1960 it was 215)

61
Q

1960s economic shifts

A

-US finally lost its place as the world’s most important exporter
Vietnam war was Training finances
-gov was increasing the money supply but inflation was still rising (increasing money supply helped gov to meet increased welfare costs
-amount of gold kept falling, so the balance between gild reserves and paper money was increasingly out of balance
-1955 international Bretton Woods agreement made the dollar the currency to be backed by a gold reserve (other currencies valued against the dollar)
-gov wanted to control prices rather than letting businesses have its head, so it increased the money supply more, slowing inflation
-this created problems for the future (gap with US gold supply)

62
Q

stagnation

A
  • when business stops expanding and stagnates, while inflation continues
  • happened during the 1970s
  • Japan, UK and Germany had overtaken the USA in technological developments (US world share in esport of manufactured goods was 29% in 1953 vs 13% in 1973)
  • cost of raw materials rose with inflation so businesses had less to invest
63
Q

effect of stagnation

A
  • previously when business stopped expanding, wages stopped rising
  • prices didn’t fall
  • inflation carried on and people came to see rising prices as normal
  • those who could afford to carried on spending
  • some workers (e.g. coal industry) had their wages linked to the consumer price index )CPI. this kept their wages in line with inflation
  • people found their money could buy less and less, leading to rising deprivation.
64
Q

government action to 1970s problems

A
  • federal spending was very high, driven up by linking social security payments and some pensions to the consumer price index in 1972 and 1974
  • end of Vietnam War saved money but returning soldiers added to unemployment and drained welfare benefits
  • when the government tried to control the economy it was too nervous of public reaction (e.g to sharp inflation or unemployment)
  • stop linking wages, pensions and benefits to inflation as whilst the helped people it affected, it put the government into deeper debt
  • some people couldn’t cope with credit payments, their homes were repossessed and they became homeless and dependent on government welfare
  • 1979 money supply contained by the Fed, not the government
65
Q

1973 fuel crisis

A
  • caused by the Arab-Israeli War
  • the organisation of petroleum exporting countries (OPEC) supported Palestine
  • they put the prices up by 70% and embarked oil exports to the USA and other centres supporting Israel
  • prices remained even higher after the war
  • by January 1974, world oil prices were four times their price they had been before the crisis (never returned)
66
Q

1979 fuel crisis

A
  • from May to July shortages were as bas as in 1973
  • only lasted three months and so there was no fuel rationing
  • worried about heating fuel shortages during that winter
67
Q

impacts of the fuel crises

A
  • speed limit of 55mph and fuel rationing with ration books
  • car dependent Americans suffered. exacerbated by driving age being 15
  • created high levels of discontent with the gov, people felt they had made the 1979 shortages worse by ordering stockpiling at the start (failing to deal with it and making matters worse)
  • signifiant number changed their car buying habits, from big American ‘gas-guzzling’ cars to smaller Japanese and European cars that used less fuel
68
Q

the confidence crisis of the 1970s

A
  • unemployment rose from 6% in 1978 to 7% in 1979
  • people and business were scared to spend
  • in July 1979, Carter addressed the nation and discussed the crisis. e said the biggest cries was not the energy crisis but the crisis in confidence
  • tried to reproduce Roosevelt’s confidence inspiring fireside chats (tried this in 1977 with televised chat about the energy crisis0
  • Carter wasn’t as good with the public and had a history of failing to cope with the economy
  • little confidence in the austerity measures working and so were unlikely to support him when he asked to drop the standard of living that people felt had already dropped considerably
  • rising homeless ness and unemployment reminded people of the GD leading them to vote for Raegan who had a very different economic policy