BOOM:causes Flashcards
why was there an economic boom in the 1920s?[5]
1.impact of WW1
2.consumerism
3.the role of the republican government
4.mass production and growing industries
5.advertisement
how did WW1 cause an economic boom?
the USA came out of the war as the worlds leading economy and prospered financially. The USA only joined the war in 1917 so their economic growth was disrupted less compared to other countries who fought in the war. By the end of the war,the USA led the world in the production of medicines,dyes and other materials.The war also created technological advancements which was used by the US industry and helped them do well.
how did WW1 make the USA the worlds leading economy?[3]
USA became worlds leading economy because
1.of the one way trade with Europe in which the USA received money in exchange for food ,materials,ammunition during the war
2.the US took over European oversea markets during the War and many American industries became more successful than European industries eg.replacing Germany as leading producer of fertiliser,dyes and other chemical products
3. the war led to more advanced technology eg.new materials(plastic) and mechanisation
how did the republican government cause the economic boom?
the republican government caused an economic boom through their new policies.
what policies did the republican government introduce to encourage the economic boom?[4]
1.put tariffs on imported goods which made foreign goods more expensive.Therefore Americans bought more American goods and helped American producers.
2.lowered taxes paid by the rich and their companies so the rich had more money to invest in American industries and to start more businesses,creating more jobs.
3.the republican ‘laissez-faire’ approach meant the government didn’t interfere with businesses or put controls on their finances
4.overall low taxes so more money to spend
how did mass production cause the economic boom?
new techniques and technology meant that goods could be produced on a larger scale for cheaper.Henry Fords creation of the assembly line helped develop mass production.Fords methods were adopted by other American businesses.Goods became cheaper which meant that even ordinary Americans would be able to afford them.The more people who bought the goods,the more money for American businesses.
