Economic Change Flashcards
Why was there a postwar depression
Postwar production was too high so prices fell, many farmers had to sack workers. Old industries were in decline. Republican government believed in laissez-faire policy and didn’t try to stop the depression, they did introduce tariffs but they were just reacted to with Tariffs so exports fell
How did the introduction of specialisation cause a boom
The mass production techniques specialisation and prices could drop because business costs for help. This increased demand for manufactured goods. In 1917 4 million cars registered, by 1929 23 million cars registered.
How did new management techniques cause a boom
New scientific management techniques increased wages and better working conditions therefore causing labour productivity to increase.
How did the government encourage people to buy American
By subsidising farmers and cutting business taxes
What was higher purchase and why did this cause a boom
This was people buying things on credit and it meant people could buy more consumer goods, they also bought more homes and mortgages, all increasing confidence in the economy.
Why did shares go into a boom cycle and what is this known as
In the 1920s prices of shares began to rise rapidly and the media began to point out that you could buy small number of shares and sell them straightaway and make a profit therefore ordinary people began buying and selling shares. This sent shares into a boom cycle known as a bull market.
When was the Wall Street crash
October 1929
Why did the Wall Street crash happen
Investors felt the share prices were dangerously high therefore sold and kept the profit. Prices then continued to fall and a bear market replaced the bull market.
What fraction of banks in operation before the crash then went bankrupt
One third
What was Roosevelt’s first action to help recover the economy
He closed all banks, had the FED inspect them and only reopened the healthy ones
How did Roosevelt increase confidence in the economy
Are used federal agencies to increase employment
Why did consumer spending increase after World War II and what statistic shows the increase in production
After the war there was increased demand for goods that many consumers have gone without therefore demand rose dramatically. Production increased from 213 billion worth in 1945 to 284 billion worth in 1950
How did Truman come down hard on strikes
When coal miners striked, Truman took over coalmines. When the rail workers striked, he took over the railways. When rail workers walked out he asked Congress to draft strikers into the army, they quickly back down.
What statistic shows the post well baby boom
1947 nappy cells were $32 million by 1957 this was $50 million
How did the government provide support for those leaving the military after World War II
Those leaving the military got a leaving payment, unemployment payment for a year, loans to buy homes and medical and healthcare
Why did farmers continue to manage after World War II
The government continued subsidies and demand increased
What control prices during the war and when did it shut down
The OPA control prices but they shut down in 1946
Why did prices increase after the war and by how much
Following the war farmers and businesses wanted to exploit the demand for goods and food, and prices jumped 25% in two weeks
How did the Fed steady inflation
They put controls in the money supply
Why did the suburbs start to develop
Factories colleges and universities moved outside the cities where there was more land the government also funded the building of roads and homes, the 1965 highways act built 41,000 miles of interstate highway.
What will Levitt towns
These were towns in which the houses were mass produced prefabricated cheap housing built by the Levitt company. However they refuse black Americans
The USA designed the radio but how did Japan change that
They miniaturised and improved it. By 1958 there were 45 million radios in the USA
Why did people move to the Sunbelt and how did this affect cities
People attracted to the Sunbelt because land goods and labour were cheaper so there was a significant shift in industry, good air-conditioning also made this area more attractive. This drained the city of labour and resources
Why was there a downturn in the economy in the 1960s
Because the USA lost its place is the most important exporter due to a drain on finances from the Vietnam war. Therefore in order to balance the gold reserves and paper money the government slowed increasing the money supply which cause the downturn in the economy
