America Inequality and Opportunity, 1920-73 Flashcards
What is the meaning of the Republican policy “laissez-faire”?
“Leave alone” - businesses were left alone to continue generating their wealth, as Republicans believed in low taxes to allow people more money to spend.
Who were the First Americans, and how were they treated?
They were (still are) the Native Americans, the indigenous people. Originally, there were 5 million of the., but after poor treatment from the European settlers there were only 250,000 left by 1900. They were forced to live in reservations.
Where were the Early Immigrants from?
Britain, the Netherlands and Germany.
Where were the New Immigrants from?
Mostly from Eastern and Southern Europe, Cuba and Latin America.
Give four features of the 1920s economic boom.
- Urbanisation.
- Development of modern architecture like skyscrapers in New York.
- More people began to move away from rural areas.
- Broadway offered entertainment and became very popular.
What does LACKPANTS stand for?
Laissez-faire
Assembly Lines
Credit
Knowledge
Position of America (war)
Advertisement
New consumer goods
Tariffs
Share confidence (investments)
What was credit?
A system that allowed people to pay for a product without actually having the money - they would have to pay it off over a period of time. Also called a ‘hire purchase plan’.
Give two pieces of evidence that credit contributed to the 1920s economic boom.
$8.5 million was borrowed in credit in 1929 over the course of the year.
Six out of ten cars were purchased using credit.
What was Knowledge (in terms of the economic boom)?
America learnt how to manufacture dyes, chemicals and medicines, which allowed them to outproduce rival countries (e.g. Germany) in this industry.
How did America’s position in WW1 contribute to the economic boom?
They did not have as much war debt as countries like Britain or France or Germany. Instead, they were actually owed money. This meant they were in a much stronger financial position.
How did tariffs contribute to the economic boom?
Tariffs were higher on imported goods and lower on American goods. This meant that American produce would be cheaper and therefore more appealing to the market, allowing American businesses to thrive and expand.
How many Americans owned shares in 1929? How does this compare to 1920?
About 20 million Americans owned shares by 1929. This is 5 times more than in 1920.
How many shares has been sold
by 1929?
1.1 billion.
How did advertisement contribute to the economic boom?
Billboards, newspapers and magazines all contained adverts urging people to keep up with the latest trends and to continue spending. Catalogues made spending easier, as it meant purchasing goods became more accessible to those in rural areas, since produce could be delivered directly to your door.
Give an example of mass production contributing to the economic boom.
Henry Ford’s car business.
Why did Ford fanously only produce black cars?
This meant that time would not be wasted in changing the paint in spray guns for every car, increasing the speed and efficiency of production, leading to more cars being produced and them being cheaper because of it.
How many Ford Model T cars were made every minute by 1929?
6 per minute. 1 per ten seconds.
How did the popularisation and rise in access to electricity contribute to the economic boom?
People were able to buy electrical goods, which opened up a whole new market. 70% of homes had access to electricity in America by 1927, so there was a huge demand for appliances like ovens, telephones, fridges and irons.
How did assembly lines contribute to the economic boom?
They enabled mass production - by allowing more products to be made in an organised, efficient manner, the prices of said products were able to decrease while the popularity and profit would increase. It also meant more people were employed to work on different sections of the same productz and no specialist expertise was needed.
What was viewed as a method to combat poverty by Herbert Hoover?
Shares.
How did Ford’s three-shift system speed up the production process?
It allowed the factories to be open 24/7 and thus producing 24/7. More time to produce the goods meant more goods could be made in that time, reducing the cost of the product, meaning more people could buy those goods.
Which method of production allowed Ford to employ cheaper, low-skill workers while speeding up his production process?
Introducing assembly lines, where a worker was responsible for just one or two jobs.