đź“ťIDEA PARAGRAPHS - The American Boom Flashcards
D) For republican policies as a reason for the boom, what was the republican policy of laissez faire?
The idea that the government should do as little as possible to interfere with people’s everyday lives
E) For republican policies as a reason for the boom, what did republicans do to import duties / tariffs and what was their taxation policy for businesses?
Republicans made it so that tariffs were placed on imported goods so that everyone bought American goods instead so rich people could have as much money as possible so they could start more companies and create more jobs
A) For republican policies as a reason for the boom,
What was the significance of republican policies for the growth of businesses through laissez faire, expensive import duties on foreign goods and low taxation on American businesses?
- Laissez faire: business men could set up businesses to their own accord and pace without the government interfering and reducing things like profit so that maximum money can be made
- expensive import duties on foreign goods: this means more people will be buying American goods instead and so increasing the countries economy
- low taxation on American businesses: makes it easier for businessmen to start their businesses and make maximum profit which they can use to expand the companies and increase employment
D) For advertising as a reason for the boom, what types of advertising were taking place in the 1920s?
Posters, radio ads, travelling salesmen and catalogues
E) For advertising as a reason for the boom, what entertainment developments meant that people were able to access more advertisements than before?
Radios and TVs because they made goods more well known to a wider audience causing people to buy them. By 1929 there were 10 million radios
A) for advertising as a reason for the boom,
what role did increased advertisement play in the growth of businesses?
If businesses were growing what did they need to do that would also help the boom?
- increased advertisement meant that businesses were making more money and were selling their goods faster as more people were buying them
- growing businesses meant companies had to be expanded and so creating more jobs and generating more money towards the economy so more had the money to spend on more goods and so helping the boom
D) For credit as a reason for the boom, how did hire purchase work and give an example of a type of item purchased in this way
Where people bought goods with a small deposit and then payed it off in weekly instalments e.g. a motor car
E) for credit as a reason for the boom, how did advertisement help hire purchase?
With TVs radios and catalogues, people could choose what item they liked and buy it without needing a huge amount of money
A) for credit as a reason for the boom,
how did being able to make monthly instalments help businesses grow?
If businesses were growing what did they need to do that would also help the boom?
- it allowed more people to be able to buy goods and so more items were being sold giving businesses more money
- they needed to produce goods faster to keep up with the rising demand for goods
D) For position in the First World War as a reason for the boom,
What was the economy of America like after the First World War compared to other countries?
It was much better and stronger than all other countries as it wasn’t physically devastated by war following their policy of isolationism
E) For position in the First World War as a reason for the boom, why did America become involved in the war?
Because economic growth of fighting countries became disrupted and so the USA led the world in the production of medicine, dyes, weapons and basic goods
A) For position in the First World War as a reason for the boom,
How did American businesses benefit economically during ww1?
How did American businesses benefit economically after ww1?
- businesses thrived as American banks loaned money to Britain and its allies to buy food, weapons and equipment from mainly the USA creating many jobs
- layer nation’s like Britain, France, Germany and Russia were exhausted at the end and so American businessmen were able to exploit their resources and make a fortune from them. Also the USA was the only major nation with no wartime debts
D) for assembly lines and Henry ford as a reason for the boom,
What were assembly lines and what car did Henry ford produce as a result of using an assembly line?
A method of mass production and he produced the model T ford
E) For assembly lines and Henry ford as a reason for the boom,
Why did the assembly line have the affect of lowering prices?
Dropped from $850 to $300 because it was easier and much faster to make the car requiring much less work effort
A) for assembly lines and Henry ford as a reason for the boom,
What affect did assembly lines have on people’s ability to buy goods?
How did businesses grow as a result of assembly line production and how did this in turn affect the boom?
- Made it easier to buy goods because it was much cheaper to buy and run with one out every 2 cars being a Model T
- other businesses also began using mass production making tear goods much more affordable also having a large positive affect on the boom as more money was going towards the economy with more people being able to contribute
