Economy And The Boom

Question 1

factors of the boom

Answer 1

• first world war
• new technology- electrical appliances
  - assembly lines
• mass production- goods made quicker and cheeper
• Advertising- commercials in cinema, by 1928 30% of Americans bought goods via mail-order catalogues.
• credit and higher purchase schemes
• republican policies
• confidence

Question 2

The Car

Answer 2

Henry ford
- Modal T made for the ordinary citizen- 10,000 sold in first year
- In 1911 cost $1100, in 1929 cost $200
- 1927 new one off production line every 10s
- 1929 4.1 million cars made
- Pioneered the production line
- Motor industry employed 7% of work force and payed 9% of wages

• Car allowed more freedom for people for holidays to beach ect…
• Stimulated other business: 75% of US glass, 90% of US petrol, 80% of US rubber
• growth of suburbs

Question 3

Things that suffered during the boom

Answer 3

• coal, tin and copper were over produced after war and their prices dropped rapidly leading to wages falling + coal replaced by newer fuels like oil and gas
• closures lead to strikes - 1928 strike in coal pits because workers were paid £18 for 70h week
• textiles like cotton and wool struggled to compete with newer man made fibres line rayon + shorter skirts meant less material= less money
• Inc in mechanisation lead to many job losses in farming.
• By 1920s 42% US were living below the poverty line, many of whom worked in agriculture

Question 4

Agriculture

Answer 4

• newer industries like fruit and veg did prosper bc wealthy Americans in cities wanted a supply year round

However:
- after war Europe imported less food for USA due to poverty and tariffs
- farmers faced new competition form ultra efficient Canadian wheat growers
- new machinery ect… = more land being farmed= overproduction
- this lead to prices falling
- problem affected more than 60 million Americans, especial AA’s

Question 5

Inequality

Answer 5

• could support consumer based economy as almost half the population lived in poverty
• 1925- 32% of national income went to richest 5% where as only 10% of national income went to poorest 42%