economic boom - COMPLETE Flashcards
what were the reasons for the economic boom of the 1920s?
pro business government policies natural resources effect of WW1 credit confidence advertising methods of production new technology
🚨 NEW REASON 🚨
republican governments
how many GOP presidents were there in the 1920s and who were they?
three; warren harding, calvin coolidge and herbert hoover
what policies did they follow?
laissez-faire, pro-business policies
what did these policies include?
imposing tariffs on foreign goods and cutting taxes and regulations on businesses
🚨 NEW REASON 🚨
natural resources
which natural resources did america have in abundance?
oil, coal, land and timber
where and when was oil discovered?
houston texas in 1901
what were these materials used for?
producing goods that would be purchased by a growing population
🚨 NEW REASON 🚨
effects of WW1
what did the war mean for america?
most of europe was in ruin, leaving the USA as the largest economy
how did the war effect relations between europe and the usa?
europe now depended on the usa for much of its imports
how did the war make production more efficient?
the need for quick wartime production improved efficiency
🚨 NEW REASON 🚨
credit
what was credit originally known as?
hire purchase
what was credit?
a new way of paying that involved paying a small deposit and then the balance in instalments
what did credit allow workers to do?
afford the latest goods
🚨 NEW REASON 🚨
confidence
what were americans confident in?
that they would remain in employment
what did this mean?
that they were not afraid to go into debt to buy consumer goods
🚨 NEW REASON 🚨
advertising
what did the new advertising industry persuade americans of?
that the continued purchase of new goods was a necessity
as demand grew what happened to production?
it also grew
🚨 NEW REASON 🚨
methods of production
what method of production was introduced in the 20s?
assembly line production
what did this method enable?
huge amounts of goods to be produced
what did this become known as?
mass production
when was this method invented?
1913
what is it most commonly associated with?
henry ford’s automobile company
what did this method help create?
the middle class
what does LACK PANTS mean?
Laissez faire policies
Assembly line
Credit
Knowledge
Position of USA (globally) Advertising New consumer goods Tariffs Shared confidence
