depth study: the USA (1919-1945) Flashcards
On what factors was the economic boom based?(8)
-Resources
-Impact of the First World War
-Technological change
-Mass-production
-Mass-marketing
-Credit
-Confidence
-The policies of the Republican Presidents
Resources:
-US had a great store of natural resources: wood, iron, coal, minerals, oil and land
-helped America to become a great industrial power by the beginning of the 20th century + provided a sound basis for further expansion in the 1920s
Impact of First World War:
-US had come out the war well, it had supplied Europe with many goods during the war + had taken over European overseas markets
-in some areas, US industry was now the world leader, e.g: chemicals
-there was hastened technological change which US industry seized on
Technological change:
-plastics like Bakelite were developed effectively for the first time and were used in new household products
-automatic swicthboards, glass tubing, conveyor belts, and concrete mixers
-helped modernise existing industries + develop new ones
-the most important change was the introducing of electricity
-electricity provided a cheaper, more efficient source of power for factories + led the production of new consumer goods such as refrigerators, vacuum cleaners and radios
Mass-production:
-new technique meant that goods could be produced much more cheaply on a large scale
-Henry Ford had developed mass-production in the car industry by introducing an assembly line before the war
-he made cars so cheaply that thousands of ordinary Americans could afford them
-in the 1920s, his ideas were applied throughout industry, particularly to the new consumers products
Mass-marketing:
-mass-produced good have to be sold to a mass market: if enough people do not know about or buy the goods, the system will collapse
-so companies spent huge amounts on advertising
-this new industry developed sophisticated techniques to persuade people to buy
-the expansion of the mail-order companies gave consumers in the countryside access to the wide range of goods on offer
Credit:
-the growth of credit made it much easier for people to buy goods even though they did not have enough cash to pay for them on the spot
-firms arranged for customers to pay by instalment or hire purchase
Confidence:
-confidence amongst americans was sky high
-this meant confidence to buy goods, invest in companies, and to try out new ideas
-confidence is a vital ingredient in any economic boom
The republican policies:
republican pro-business policies encouraged the boom:
-they lowered taxes on income and company profts, giving the wealthy more money to invest in American industry and buildings, and people more money to spend on american goods
-they put tariffs on imported goods, this made imports more expensive compared with american-made goods and thereby helped american producers
-laissez faire -> they didn’t interfere in buisness or put any controls on financial institutions
-rugged individualism, with Republicans resisting the call to intervene too much in society’s problems.
New industries:
-these were industries that could use electricity and often produced the new consumer goods such as radios, cookers…
-the assembly line was adapted for use in all of the new industries and reduced costs
-most products were labour-saving deviced which made life easier, they sold very well
Declining industries:
-cotton:polyester taking over
-coal: oil, gas and electricity taking over, mines closing, 600 000 miners on strike (1922)
-overproducction
-prices dropped, wages fell
Why did agriculture not share in the prosperity?
-Farming did not do well in the 1920s. US agriculture had expanded during the First World War to send food to Europe, but afterwards countries returned to growing their own again
-Foreigners could not buy US food because the high tariffs meant that they did not have dollars to spend
-There was also competition from Canada. Prohibition hit the production of barley
-US famers were over-producing food, and prices got very low
Did all Americans benefit from the boom?
YES
W hite
A nglo
S axon
P rotestants
NO
- Black Americans + Farmers + Industry workers + complications in the South
Black Americans:
-3/4 of US black population lived in the South, where they sufferes from racism in all its forms
-although they had been freed from slavery, they were still desperately poor, especially the sharecroppers, who were exploited by white landowners
-many lived in wodden shacks with no amenities. They had seperate cinemas, restaurants, buses and parks
-During the first ww, many black americans had moved to the industrial cities of the north to find work, but when the war ended, they faced hostility + even race riots
Industrial workers:
-although profits rose by 80%, wages rose only by 8%. Recent immigrants got the worst jobs: casual work, on low pay
-wages were low in old indutries facing world competition, like coal and textiles. Mechanisation often replaced workers, especially skilled workers
-there were up to 2,000,000 unemployed throughout the 1920s
-trade unions were able to make little impact, henry Ford would not allow trade unions in his car factories which meant that workers could do little to improve their conditions