Boom, Bust and Recovery, 1917-41 Flashcards
what did farmers do during the war?
produced wheat as they were urged, given subsidies
what caused some farmers to become unemployed?
the high use of machinery, no longer needed
why did prices fall?
after the war, overproduction of wheat to pay off their loan debt
how did the boll weevil trouble farmers?
it ate young cotton plants which destroyed their way of getting money
when were strikes?
1919 and 1920
why had people striked?
demanding better working conditions, but this often failed
what were the results of strikes?
as it was local and nationwide, it caused businesses to sometimes fail
how did the coal industry start to wane?
water power and electricity were used more,
widespread easier availability
what figure had the coal industry dropped to?
1900 = 90% of energy supplies in US
1930 = just 60%
what was the impact of the coal industry wane?
led to further unemployment
why had the government not intervened?
the republican government believed in laissez-faire
did not interfere with the economy, a belief that it fixes by itself
what was the Henry Ford car technique?
Making one worker responsible for one step in the process
why was the Henry Ford car technique significant?
mass produced goods made more quickly and cheaply
increased consumerism
1917, 1929
1917 = 4.7M cars registered
1929 = 23M cars registered
What method did Henry Ford use?
scientific management
what was scientific management?
training the workers in the most effective way for faster efficiency
how did Henry keep the workers to stay?
good wages, good working conditions and benefits to those who stayed a long time
what were hire purchase and loans?
paying the company in a series of fixed payments
what did companies do?
Sears sent out huge catalogues, promising ‘easy payments’
what happened between 1920 and 1929 for debt?
consumer debt rose from $3.3 billion to $7.6 billion
what did loans do for the economy?
they helped people of ‘buying American’
purchase goods, consumerism
why had older industries waned?
newer industries ran on electricity and had a higher level of mechanisation,
produced updated consumer goods
1917 1930 electricity
1917 = 7.8M homes + businesses wired for electricity
1930 = 24M
