Economic 1920-1945 Flashcards
What were the 6 causes of the boom
Automobiles Cycle of prosperity Consumer goods / credit Entertainment Stock market Sky scrapers
What is a boom
An economic straight of growth with rising profits and full employment
Who was Andrew Mellon
sec of treasury ; low taxes balance budget and minimal govt intervention
How did WW1 help the US economy 20-45
Loans were being paid back
Had money from selling weapons and exporting food to other counties
From 20-45 what were the Republican economic policies
Lassiez faire
High tariffs
Low taxation ( more money to spend on US goods)
Trusts ( super co-operations which dominated industries) was
How did the GDP grow per year from 1922
2%
From 1922 how did real wages grow
30%
What type of car did Henry Ford want to produce
A cheap car affordable by Americans
What technique did Henry Ford do to reduce me the time of building a car and by how much
The assembly line
From 13 hours to 1 hour 33
Because of the assembly line how much did the cost of the car decrease from 08-25
08- $850
25- $290
How did ford treat stuff well
To make up for boredom after assembly lines
They doubled the workers wage to $5 a day so had more money to spend on consumer goods
What was he most famous ford model
Model T
How did people know about more things on offer in the 20s
Advertising
Such as to radio and cinema
How did many people afford consumer goods
Credit
What is credit
You would pay for customer goods bit by bit and would eventually pay the whole thing off with interest
(Instalment buying)
How did credit affect Americans financial state
Led to many being in debt
Wasn’t a problem as economy was booming and people had jobs so could make repayments
When was the decade of the boom in construction
20s
When in the 20s did the amount of roads doubled
1929
In the 20s what building were in demand
New factories
Offices
Shops
Growing towns needed public buildings such as schools and hospitals
How was the 1920’s competitive for sky scraper companies
See who could have the grandest and largest
Which industries suffered 20-45
Old industries (Staple) such as cotton suffered from competition from new synthetic models such as nylon (bcos of flapper fashion)
Coal suffered because of competition from oil and electricity
New machinery meant less people needed to work so unemployment because a problem in areas were these were the main source of work
How did farmers loose money after WW1
Suffered over production as not many people were exporting American food after war
Who gave US farmers competition
Canadian wheat farmers
Meant prices fell and wages were cut
Through the 20-45 how did wheat price Change
Fell by 50%
What were famers dependant Upon to survive 20-45
Loans
Fordney McCumber tariff helped them to protect home grown produce from foreign competition
When did the wall st crash happen
1929
What were the 4 causes of the wall st crash
Over production - companies making more goods than could sell lead to unemployment
Unequal distribution of wealth- rich got richer poor got poorer
High tariffs on imported American good for foreign countries - counter act Fordney McCumber , made American goods to expensive to buy for the rest of the world (reps not regulate banks)
Speculation on the stock market - people buying stocks and shares with no experience. ( buying on the margin) once stocks began to fall, everyone withdrew money through panic which caused crash ‘Black Thursday’
What did Hoover do to help the depression
Set up national credit corporation 1931 - provided small banks money
Set up reconstruction Finance Corporation 1932- provide loans to federal banks
Set up federal farm board to provide loans to format co-operations
Grain stabilisation cooperation to maintain price of weed
When did lend lease begin
1941
How much material did lend lease ship
$50 billion worth
How did lend lease work
US loaned war materials to allies
to be returned to US after the war and not to be charged if destroyed
How much did lend lease give America through the war
They got no payment through the war however supplying the world with industry so US economy was fine
By 1944 how much US weapons were in the world
1/2 of weapons made
How many US weapon manufactures had war contracts
80%
But thousands of smaller involved supplying tools materials and equipment
How many Americans were involved in war time factories
14m
How many people 20-45 migrated from south to north
4m
How many women joined armed forces WW2
300,000
How many women joined the work force towards war at home WW2
7 m
Double to number of women before the war
How did US come out of WW2 regarding the economy
Only country to come out stronger
How many businesses started up to war time contacts
500,000
How did the war effect mass unemployment
It ended it
Big demand for work
How did WW2 effect farmers
Produced food for Europe
How did general people make money from war
War bonds
Gave money to govt and would get it back in end of war - investment
What big businesses better from WW2
Steel Oil Engineering Chemicals Computers
How was the depression after WW2
Ended
