Industry and Social change (Roaring 20s) Flashcards
Why did the automobile industry have such a big impact on the growth of the American economy?
Caused other industries e.g. rubber, leather and steel to rapidly grow as well.
By 1929 more than 26 million cars were registered in the USA.
Five causes of the boom?
Isolationism Technology Mass production Hire purchase Shares
How did isolationism affect the impact of the economy?
The republican government under President Harding (and President Coolidge kept out of foreign affairs, and had high import tariffs meaning lots of money if people wanted things from the USA.
What is isolationism?
A policy of remaining apart from the affairs or interests of other groups, especially the political affairs of other countries.
What type of technology helped the economic boom?
Electrical, chemicals and film industries.
How did hire purchase earn more money?
Allowed people to purchase new gadgets such as vacuum cleaners, washing machines and refrigerators. Borrowing increased the amount of money available to spend, and, therefore, the demand for goods.
How did shares help the boom?
Firms learned to raise money for expansion by selling shares on the Stock Exchange - this was to cause problems later.
Between 1919 and 1920, how much did the USA’s GNP (the total value of goods produced and services provided by a country during one year) increase?
America’s gross national product (GNP) grew from $78 billion to $103 billion.
What is GNP?
the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments.
How many houses also newly got a radio?
The number of households with a radio rose from 60,000 to 10 million BETWEEN 1919 AND 1920
Number of airline passengers increase?
The number of airline passengers grew from less than 6000 in 1926, to approximately 173,000 in 1929.
How was there a link between social change and the economic boom?
The economic boom affected society. Jobs were easy to find and were better paid than before. There was a clear link between prosperity and social change.
