Causes Of The 1920s Boom Flashcards
What did Laissez faire allow?
Businesses to prosper and gain higher profits as there were fewer regulations and high tariffs
What Act reinforced Laissez faire?
Fordney McCumber Tariff Act 1922 as it raised taxes to highest ever level
Who was rugged individualism promoted by and what was it?
Promoted by Republican presidents, people were able to achieve their own success
What were some examples of technological changes which occurred in this period?
Introduced electricity, refrigerators, conveyor belt
What were some new building materials and what did they allow?
Concrete mixers and new plastics like Bakelite, transforms cities with skyscrapers
As a part of consumerism, what did Hire Purchase allow for?
Makes it easier for spending
How did advertising become a science?
Specific genders and age groups were targeted
By 1929, how much worth of goods had been bought on credit? What does this show?
$7 billion worth of goods bought on credit, credit became more available
What happened to wages between 1923 and 1929??
They increased by 8% (on average)
As the car industry grew, what did this cause?
Knock on effect to other industries, such as road building, steel and rubber
In 1913 how often could they produce a car in comparison to 1920?
1913: every 3 minutes, 1920: every 10 seconds
What caused cars to be able to be produced faster?
Assembly line
By the end of the 20s how many cars were on the road?
4.5 million
Why was there a stock market boom?
Share prices rose, so more were willing to invest, pushing them even higher
In 1926 how many shares were traded in comparison with 1929?
1926: 451 million, 1929: 1.1 billion
How did WW1 cause the boom?
More demand from products from industries such as agriculture to feed the soldiers and other countries took loans with interest
Trade with allies during the war was worth what by 1916?
$3.2 billion
During the war, food production increased from what to what per year?
12.3 million tons to 18.6 million tons
Mellon handed out tax reductions totalling what?
$3.5 billion
How did the growth of female employment cause the boom?
Led to a demand for labour saving devices
How much were companies spending annually on advertising?
$3 billion
When was the conveyor belt introduced?
1913
