Economic Boom Flashcards
What was the economic boom and when did it happen?
A period of rapid economic growth in the 1920s, leading to increased wealth, industrial production, and consumer goods ownership.
How did mass production contribute to the boom?
It made goods cheaper and faster to produce, increasing supply and making products like cars (Ford) and fridges more affordable.
What role did the car industry play in the economic boom?
It created jobs, boosted related industries (steel, rubber, glass), and improved transport, allowing suburbs to grow.
What was hire purchase and what was its impact on the economy?
Hire purchase allowed people to buy goods on credit and pay in instalments. This increased consumer spending, boosted demand for products, and helped drive economic growth.
How did advertising contribute to the boom?
Billboards, radio, and cinema encouraged people to buy more goods, increasing sales and profits.
What was the Republican government’s approach to the economy?
They followed laissez-faire policies, kept taxes low, and imposed tariffs to protect American businesses.
What was the Tariff Act?
A 1922 law that put high taxes on foreign goods, making American products cheaper and boosting local industries.
How did the stock market contribute to the boom?
People invested in shares, giving businesses more money to expand, creating jobs and more wealth.
What was the “cycle of prosperity”?
Increased demand →
higher production →
more jobs →
higher wages →
even more demand.
How did World War I help the U.S. economy?
The U.S. sold weapons, food, and materials to the Allies, making huge profits and strengthening its industries.
