America - Key question 4 Flashcards
What were the causes of the economic boom? (LACK PANTS)
L-Laissez faire A-Advertising C-Credit K-Knowledge P-Position in WW1 A-Assembly line N-New consumer goods T-Tariffs S-Share confidence
How did Henry Ford build so many affordable cars?
They used the assembly line to produce more than one car per minute. The Model T was standardised with one colour (black) and one engine size. The annual production grew from 1.6 million in 1920 to 5.6 million in 1929. In 1926 the Model T only cost $295. By 1925 half of the worlds cars were Model T’s.
What were the president’s policies?
Calvin Coolidge-Laissez faire
Herbert Hoover-Individualism
Warren Harding-Protectionism
How did advertising help the economic boom?
Advertising encouraged American’s to buy products and by 1929 $200 million was spent on advertising. Coca-Cola was the first company to show how you can increase profits and radios like the KDKA were paid for by advertising.
How did shares help the economic boom?
A share is investing money into a business and increasing profits. People were becoming more confident in buying them and the average profit was 65%.
How did new technology help the economic boom?
More people were buying cars as 9 million were sold in 1919 and 26 million were sold in 1929. There was a 21% increase in the number of households with vacuum cleaners and 7% more fridges.
Why did America become a consumer society?
Hire purchase schemes meant people could buy now and pay later. Wages increased and people had spare money for luxuries. By 1927 2/3 of US homes had electricity. Female employment increased, meaning they had less time for chores.
Why didn’t farmers benefit from the economic boom?
In 1924 600000 farmers went bankrupt and couldn’t afford the mortgage. Sharecroppers gave a share of his crops in order to pay as rent.
What were trade unions?
Trade unions were organised associations of workers to protect their rights. They were formed to protect workers and in 1919 more than 4 million worked staged 3600 strikes. Employers didn’t employ union members.
What was Individualism?
The government would not help and people should solve their problems by working harder.
What was Protectionism?
Taxing foreign goods to encourage purchasing cheaper, American goods. This was shown in the Fordney McCumber Tariff Act.
What was Laissez-Faire?
The government left the economy alone.
