American people and the Boom 1/2 Flashcards
Explain what the ‘Boom’ was
The boom was when the economy was strong in the 1920s which made Americans spend and borrow more money
What was good about the economic ‘Boom’
During the 1920s, Employment rates and wages were high so people had more money to spend on stuff like hoovers, washing machines which were luxury items at the time
What are 2 ways americans payed for luxury items such as cars, hoovers and washing machine and define them
- Hire purchase- Payements in instalements
- Credit- Either taking out a loan or get given the item and agree to pay for it later
What is good about Credit and Hire purchase payments
encourages people to buy expensive goods
What is a stock market boom `
This is a period during 1920s where people keep on buying shares, wait for their value to go up and then sold for profit
Who is Henry Ford and what did he do
Henry Ford used mass production for his ford business and created factory lines to produce cars in large quantities and efficiently
What are advantages of the Ford assembly line
It was made quickly so more cars were produced cheaply so was affordable to public
How has Advertising affected peoples lives
Encourages Americans to spend more as companies tried persuading people to buy their goods
What is the laissez faire approach
This is a approach which the republic government believed that the government should not try to control the economy
What did the republican governments do
The republican government reduced income tax and other taxes which meant that people had more money to spend on the business
What is the Fordney McCumber Tariff
This is used to protect US farmers and factories by making it costly for foreign producers to import their product to the US to make it more likely for people to buy from the US
How did new mining technologies affected peoples life during the boom
New mining technologies led to coal workers losing their job and whoever kept their job, their wages was low which led to unemployment and poverty
How did monopolies affect peoples lives during the boom
Monopolies kept prices high and wages low. this is because there was no competition which adds on to the poverty that some people are experincing
How has migration of farmers affected peoples lives during the boom
Migration of farmers from rural areas to urban areas meant that there is an increased chance of unemployment because there is more people competing for jobs and houses
What is meant by rugged individualism
people are expected to work hard to support themself rather than relying on the government to support them