Causes of Economic boom Flashcards
What was carpe diem?
live for the day
How was the first world war cause of boom?
USA joined war in 1917 so its economy was not badly hurt
they took over colonial trade
they took control of the chemicals industry in Germany
People’s attitude changed
WW1 propaganda was basis of advertising
WW1 inventions
What did the chemicals industry develop?
Plastic, rayon, fertilizers and dyes
What was the hire purchase/credit?
Getting loans and paying back the money in installments
How did hire purchase/credit help the economic boom?
Even poorer people could afford goods which led for industries to produce more and made more big profits
What is the advertising industry?
WW1 propaganda techniques used in advertising . This made people aware of new products led to bigger profits hire more workers who spent their wages on consumer goods
How did the change of social attitudes of people lead to the economic boom?
Before the war they were traditional in attitudes.
After war attitudes changed. People were willing to spend money, consume more.
Which raw materials did USA have?
Coal
Oil
Wood
Food
Why was coal needed?
For electricity
Why was oil needed?
For petrol for new cars, planes
Why was wood needed?
For housing industry
Why was food needed?
So could feed workforce and the cities where industry based
Why was raw materials the cause of the economic boom?
USA didn’t have to import lots of raw materials- which would be expensive
What is laissez- faire?
Government believed should not interfere in business and economy- less bureaucracy
What is tariffs?
Taxes on imports made them more expensive than products made in USA- people bought American products. So companies made profits- workers - consumerism
Who put tariffs on imported and when?
1922 Fordney McCumber
What were trusts?
One or few companies would dominate a sector of industry
Who dominated the steel factory?
Carneige
Who dominated the oil industry?
Rockefeller
How were trusts helpful?
Companies could control production, prices, wages of workers and maximize profits.
How did taxes help economic boom?
Taxes were low so people could spend money on products
What were new methods of production?
Assemble line- products were made quicker so the price dropped so they sold more making more profits so could employ more workers who could buy US products
What were the new methods of managing businesses?
Taylorism
What was taylorism?
New way of organizing timing in way things did= efficiency= so company more productive, bigger profits
What were the new industries?
Hoovers, fridges, radios, telephones and cars
What did the car industry lead to?
Development of tourism, motels, petrol stations, garages, advertising billboards, road building, house building which required skilled craftsmen
What was the importance of electricity to the boom?
electrical lighting at home appliances at homes kitchen appliances radio and film- advertising fresh fruits and vegetables- supermarkets helped markets annually transport in elevators street lighting lighting in factories- assemble lines
What was the importance of the banking system and hire purchase/credit?
1920 banking system was not very regulated
lots of small banks usually in rural areas
banks didn’t have liquidity
banks lent money to investors on stock markets
What was the importance of the car to the economic boom?
Encourages petrol industry Advertising Building cities tourism increased because of hotels mechanics- garages glass and rubber industries boomed road building car racing increase in trade street lighting entertainment= cinemas/ sports stadia
What was mass advertising?
Billboards radio magazines catalog sponsorship electric signs on cars and trucks
