America Unit 1 Flashcards
What are the 4 causes of the boom?
Industrial strength
WWI
Republican policies
Consumer goods and stocks or shares
Why did industrial strength help lead to an economic boom?
America was rich in natural resources
Population in towns were increasing as most people lived there or moved there to get jobs - however many became homeless - 73,000 in 1920
They were selling their products to other countries, like plastic (biggest producers)
Why did WWI help lead to an economic boom?
America was selling weapons and foodstuffs to allies
Weren’t in the war for long so their resources and economy wasn’t badly damaged
Allowed them to take over Germany as the biggest producers of plastic (Germany was busy with war)
Why did Republican policies help lead to an economic boom?
Policies like:
Laissez faire
Low taxation - people had more money so could spend more on the industry
Tariffs - people stopped buying products from other countries as it was expensive
Isolationism - the US worked alone
Why did consumer goods and stocks or shares help lead to an economic boom?
Many people began to buy stocks and shares as they had money to spare
Adverts promoted products made by industries (e.g. washing machines) - promoted products (more sales)
Hire purchase - pay over time so it allowed people to buy more expensive things
What is the cycle of prosperity?
Increased employment, leads to…
More money to spend on goods, leads to…
Increased demand for goods, leads to…
Increased production
It’s a constant cycle of this
If one of these things happens, it can set off a chain reaction and the rest will happen
If one is missing (e.g. no employment) then the cycle cant be created
Who was Henry Ford?
The creator of the company Ford
Helped make the motor industry very big
Introduced many process that allowed products to be sold for cheaper
What car did Henry Ford create?
Model T Ford / Tin Lizzie
How many Model T Fords were made?
15 million
How much did the Model T Ford cost in 1909 and then 1928? What does this show?
$950 in 1909
$295 in 1928
Shows that overtime, the usage of production processes (like the assembly line and standardisation) can really lower costs of products and therefore more people could buy them
How long did it take to make one Model T Ford?
A minute
What are some properties of the Model T Ford?
Affordable
Cheap
Not the best quality but very popular
How many men worked in Fords factories by 1929?
81,000 working in Fords factories by 1929
How much did the men who worked for Ford earn a day?
$5 a day
Information about Fords workers?
They were lower skilled - allowed more people to be employed (helped continue the cycle of prosperity)
What is mass production?
When products were made on an assembly line and was the same
What was an assembly line?
A line that had many stations, each station was in charge of doing one thing (less skilled workers needed)
What was standardisation? Benefits?
When all the products made were the exact same - allowed everything cheaper as different versions of products didn’t have to be purchased
What did mass production allow for?
Less skilled workers to be used - increased employment
Decreased the costs of the cars and therefore their prices too
What were 4 Republican policies?
Isolationism
Taxes
Laissez faire
Tariffs
What was isolationism?
The desire to keep out of foreign affairs
What did isolationism allow for?
America to keep all of their money
What was the Republicans policy on taxes?
Everyone was to be taxed as little as possible (even the rich)
What did low taxation allow?
People had therefore more money to spend because they were taxed less - American industry got richer
What was Laissez faire?
When businessmen were left alone
What did Laissez faire allow?
Business could come up with their own products
Could set own staff conditions
Could do whatever made America the most money
What were tariffs?
Taxes placed on imported goods
What did tariffs allow?
Less people bought goods from other countries as it was more expensive
All money was pumped back into the American industry
Example of a tariff introduced? What happened?
Emergency Tariff - May 1921
Taxes rose on products by 40-400%
What was 1920s America also known as?
The roaring 20s
What did the development of entertainment in 1920s America allow for?
People had more fun
Less discrimination - jazz music and black culture
What happened to the working week and wages that helped entertainment industries in 1920s America?
Working week dropped from 47.4 hours to 44.2 hours
Wages rose by 11%
This mean that people had more time and money to spend on entertainment industries
What are examples of entertainment industries in 1920s America?
Radio
Music
Sport
Film and movies
Why were radios introduced?
To promote products using adverts