Causes Of The Boom

Question 1

On what was the economic boom based?

Answer 1

First World War
Industries and methods 
Republicans policies
State of mind
Three raw materials

Question 2

How did the First World War contribute to the boom?

Answer 2

• joined late in 1917
• lost fewer resources
• lent money and sold goods
• took over trade
• trade to European countries increased
• leaders in industries

Question 3

When did the USA join ww1 and what did this mean?

Answer 3

Late in 1917

Lost less resources

Question 4

Who did the USA sell goods and lend money to during WW1?

Answer 4

The allies

One way trade

Question 5

Why did USA take over trade during WW1?

Answer 5

European countries busy fighting

Trade to these counties increased

Question 6

What industry did USA take over during WW1?

Answer 6

Germany’s chemical industry

Question 7

What proposed the newest most efficient techniques?

Answer 7

The industrial efficiency movement

Question 8

When was the first moving production line set up and by who?

Answer 8

1913

Henry Ford

Question 9

How did the moving production line (assembly line) help lead to the boom?

Answer 9

Increased production

Each worker had a specific job

Question 10

How many cars made in 1900 and 1929?

Answer 10

1900= 4000 cars made
1929= 4.8 million

Question 11

What was the first mass produced car?

Answer 11

Model T Ford

Question 12

How many cars were there in 1919 and 1929?

Answer 12

1919= 9 million
1929= 26 million

Question 13

What percentage of all glass used was used in cars?

Answer 13

75%

Question 14

What other consumer goods were made cheaper and why was this?

Answer 14

Radios
Vacuum cleaners
Washing machines
Due to assembly lines

Question 15

How much did total industrial production increase by in the 1920s?

Answer 15

50%

Question 16

What were introduced (advertising)?

Answer 16

Sophisticated sales and marketing techniques 
Salesmen 
Posters
Billboards 
Radio adverts

Question 17

How much was spent on advertising?

Answer 17

3 billion a year

Question 18

What encouraged poorer people to buy items on credit?

Answer 18

Credit schemes

Buy now pay later

Question 19

How many radios were bought on credit?

Answer 19

8/10

Question 20

How many cars were bought on credit?

Answer 20

6/10

Question 21

What did hire purchase allow people to do?

Answer 21

Buy from mail order catalogues such as sears roebuck

Make weekly payments

Question 22

Who was in charge for most of the 20s?

Answer 22

Secretary of treasury

Andrew Mellon

Question 23

How did low taxation help the boom?

Answer 23

More cash to spend

Question 24

Why did people buy more American goods?

Answer 24

Cheaper

Import tariffs put tax on foreign goods

Question 25

Why were businesses allowed to grow without interference?

Answer 25

Laissez faire

Question 26

What were trusts?

Answer 26

Huge super corporations | Dominated by business men eg Rockefeller

Question 27

How did normalcy help the boom?

Answer 27

Kept USA out of world politics and problems

Question 28

How did industries and methods cause the boom?

Answer 28

Production line/ assembly line Advertising Credit schemes Hire purchase

Question 29

How did republican polices cause the boom?

Answer 29

Low taxation Laissez faire Trusts Normalcy

Question 30

How did state of mind cause the boom?

Answer 30

Good time to spend | Bad to save

Question 31

How did the three raw materials cause the boom?

Answer 31

Abundance of them Exported and didn’t have to import them Made consumer goods

Question 32

What did most people believe about spending?

Answer 32

``` It was good Bad to save Wanted to eat lots Latest consumer goods Keep up with neighbours ```

Question 33

What are some raw materials?

Answer 33

``` Coal Iron Oil Made money by exporting it Saved by not importing ```

Question 34

What had immigration made USA?

Answer 34

A ‘melting pot’ of different races, cultures and religions

Question 35

By the early 1900s, how many nationalities were living in USA?

Answer 35

Over 100 different nationalities | Population of nearly 110 million

Question 36

What was the policy to keep USA out of the war?

Answer 36

Isolationism

Question 37

Why did isolationism allow the USA to prosper financially?

Answer 37

Loaned money to Britain and allies to buy food, weapons and equipment mainly from USA Created many jobs for Americans

Question 38

Why were American inventors and businesses able to exploit the USA’s resources and make money from them?

Answer 38

Nations such as France, Russia, Germany and Britain were exhausted by the end of the war

Question 39

What was America the only nation without?

Answer 39

Huge wartime debts

Question 40

What policy put high taxes on imports, making more goods more expensive?

Answer 40

The Fordney-McCumber Tariff

Question 41

What happened as a result of the Fordney-McCumber Tarrif?

Answer 41

Americans made more US-made goods, creating more goods for Americans

Question 42

Why could the rich invest more money? What did this allow them to do?

Answer 42

Republican government cut taxes paid by the rich and their companies The could invest more money to start more businesses, creating more jobs

Question 43

Why did people have more money to spend?

Answer 43

Taxes generally low