Causes Of The Boom Flashcards
On what was the economic boom based?
First World War Industries and methods Republicans policies State of mind Three raw materials
How did the First World War contribute to the boom?
- joined late in 1917
- lost fewer resources
- lent money and sold goods
- took over trade
- trade to European countries increased
- leaders in industries
When did the USA join ww1 and what did this mean?
Late in 1917
Lost less resources
Who did the USA sell goods and lend money to during WW1?
The allies
One way trade
Why did USA take over trade during WW1?
European countries busy fighting
Trade to these counties increased
What industry did USA take over during WW1?
Germany’s chemical industry
What proposed the newest most efficient techniques?
The industrial efficiency movement
When was the first moving production line set up and by who?
1913
Henry Ford
How did the moving production line (assembly line) help lead to the boom?
Increased production
Each worker had a specific job
How many cars made in 1900 and 1929?
1900= 4000 cars made 1929= 4.8 million
What was the first mass produced car?
Model T Ford
How many cars were there in 1919 and 1929?
1919= 9 million 1929= 26 million
What percentage of all glass used was used in cars?
75%
What other consumer goods were made cheaper and why was this?
Radios
Vacuum cleaners
Washing machines
Due to assembly lines
How much did total industrial production increase by in the 1920s?
50%
What were introduced (advertising)?
Sophisticated sales and marketing techniques Salesmen Posters Billboards Radio adverts
How much was spent on advertising?
3 billion a year
What encouraged poorer people to buy items on credit?
Credit schemes
Buy now pay later
How many radios were bought on credit?
8/10
How many cars were bought on credit?
6/10
What did hire purchase allow people to do?
Buy from mail order catalogues such as sears roebuck
Make weekly payments
Who was in charge for most of the 20s?
Secretary of treasury
Andrew Mellon
How did low taxation help the boom?
More cash to spend
Why did people buy more American goods?
Cheaper
Import tariffs put tax on foreign goods
Why were businesses allowed to grow without interference?
Laissez faire
What were trusts?
Huge super corporations
Dominated by business men eg Rockefeller
How did normalcy help the boom?
Kept USA out of world politics and problems
How did industries and methods cause the boom?
Production line/ assembly line
Advertising
Credit schemes
Hire purchase
How did republican polices cause the boom?
Low taxation
Laissez faire
Trusts
Normalcy
How did state of mind cause the boom?
Good time to spend
Bad to save
How did the three raw materials cause the boom?
Abundance of them
Exported and didn’t have to import them
Made consumer goods
What did most people believe about spending?
It was good Bad to save Wanted to eat lots Latest consumer goods Keep up with neighbours
What are some raw materials?
Coal Iron Oil Made money by exporting it Saved by not importing
What had immigration made USA?
A ‘melting pot’ of different races, cultures and religions
By the early 1900s, how many nationalities were living in USA?
Over 100 different nationalities
Population of nearly 110 million
What was the policy to keep USA out of the war?
Isolationism
Why did isolationism allow the USA to prosper financially?
Loaned money to Britain and allies to buy food, weapons and equipment mainly from USA
Created many jobs for Americans
Why were American inventors and businesses able to exploit the USA’s resources and make money from them?
Nations such as France, Russia, Germany and Britain were exhausted by the end of the war
What was America the only nation without?
Huge wartime debts
What policy put high taxes on imports, making more goods more expensive?
The Fordney-McCumber Tariff
What happened as a result of the Fordney-McCumber Tarrif?
Americans made more US-made goods, creating more goods for Americans
Why could the rich invest more money? What did this allow them to do?
Republican government cut taxes paid by the rich and their companies
The could invest more money to start more businesses, creating more jobs
Why did people have more money to spend?
Taxes generally low
