Boom, Bust, Recovery| 1917-41 Flashcards
WWII, Great Depression, Wall Street Crash etc., economic change impact
What is the ‘boom’ referencing?
Post- World War II.
Explain mass production.
Example: Fordism.
- Production of cars quickly in order to be sold cheap.
By how much did the passenger cars regsitered increase from 1917 to 1929?
18 million.
Name a few productions in mass production.
Fridges, cars, transportation deliveries.
What was the post-war depression like for farmers?
urged to produce more, took loans, fewer workers.
To which farmers flourished?
Wheat.
What was the ‘boll weevil’?
A beetle that ate young cotton plants.
What is a ‘dividend’?
Payment made by companies to their shareholders.
it’s like a reward.
What happened to coal industries?
Lost out to other fuels; drop in demand.
What was the industry like post-war?
Many strikes, dire working conditions.
What was the government reaction?
Republican at the time: believed in laissez-faire, the economy adjusted– until that of another depression.
Explain the ‘new management techniques’.
Task were broken down into small and simpler tasks.
- paid good wages.
- good working conditions.
- workers stayed at the factory.
What was the Federal policy?
Encouraged businesses to ‘buy American’.
What was hire purchase and loans?
Companies promising/lent money- fixed payments.
What was a disadvantage of hire purchase and loans?
Consumer debt ($7.6B)
Explain the changing industry.
New industries relied on electricity; textiles were dumped.
What is a ‘bull market’?
Share prices rise and people expect for more of this.
How were banks affected by the bull markets?
Use consumers to invest and trade.
What was the phrase used to describe people ‘borrow money in shares’?
‘Buying on the margin.’
What was the ‘bust’?
Wall Street stock market collapsed.
What did companies not cut enough of?
Production.
What happened in 1927?
Unemployment rose.
Why did the Republican government still do nothing?
They believed in laissez faire.
What was introduced in 1913 to regulate banking?
The Federal Reserve Board (Fed)
Explain what the New Deal did by Roosevelt.
It was slow and bumpy;
- War production, government debt funding- created employment due to the Second World War.
What was the ‘Recovery’?
Roosevelt’s New Deal as President.
What happened when President Hoover tried to push for federal action?
Republican Congress did not agree.
Why was the Great Depression worse?
Businesses and banks wen bankrupt, unemployment shot up.
Why did Hoover lose the election?
Roosevelt had the New Deal.
Did the Depression affect everyone?
No.
