Economy In 1920s (Boom) Flashcards
How did the republic gov encourage the boom?
Policy of laissez faire Low taxes Not interfering Hoover and rugged individualism Harding set up fordney-mccumber tariff in 1922 taxing imports which meant Americans bought American products which contributed to the economy
How did the motor industry help the boom?
Production of assembly line and mass product allowed model t price to drop from $850 in 1914 to $240 in 1924
Production time dropped from 12.5 to 1.5
Hire purchase allows people to buy goods w a small deposit and pay the rest w monthly install ends
1929 29 million registered cars
During 1920 $1 billion spend on national highway network
Caused other industry’s to boom such as rubber and steel
Who benefited from the boom?
Owners of consumer goods factories Assembly line workers Spectators on stock market Early immigrants Middle and upper class women Builders
Reasons for economic boom?
Isolationism Technological developments especially electrical chemical and film Mass production - motor industry Shares Hire purchase Increased consumer demand Position post ww1 Republican gov
Evidence for the boom?
Gnp rose from $836 billion to $103 billion
Households w radios rose from 60000 to 1 million
Airline passengers rose from 6000 in 1926 to 73000 in 1929
Effects of ww1 on us economy?
European economies exhausted but us economy blossomed as joined war in 1941 which meant cities and industries not bombed and able to capitalise on them and dominate their markets
Invested in European factories so if they did well the us did well
Made loans and charges interest
What was hire purchase?
Paying for things in instalment whilst having use of them
Who didn’t benefit from the boom?
Farmers Sharecroppers Black peoples Those in rural areas Coal miners Textiln workers New immigrants
How did the boom affect industries?
Textiles and coal did not prosper
Bricklayers made $320/month but cola mines made $103/month
Those used by cars such as steel and rubber did well
How did farmers fare in the 1920s?
During ww1 encourages to produce more of food but they encouraged too much which meant the value of food went down
Mane lives in shacks without electricity
Farm labourers earner $49/month in 1929
Why did industrial production rose by 50% in the decade?
A range of consumer industries were created such as the motor car refrigerators radios and mass production ensured prices were kept lower
Identify some reasons for the economic boom?
- Hire purchase
- New industries
- Republican policies
