Influences On The boom years of the 1920s Flashcards
Name several influences on the boom years of the 1920s
1) federal government help
2) technological advancements helped lower prices
3) booming car industry stimulated other industries
4) advertising through celebrities magazines(sears) ect and credit loans cause people to buy more than ever before “buy now pay later”
5) Americans made profitable investments and sales in other countries.
How was the federal government helpful on the boom years?
1) 1921 federal highway act constructed roads which assisted the movement of goods from production site to customer
2) 1922 Fordney Mcumber tarrif helped American businesses.
3) Decreased federal tax in 1924,1926 and 1928 only the top 2% of the population was paying federal tax by 1927
4) Did not impose regulations upon industry(laissez faire economic ideas) this meant worker could work more hours etc and therefore make more money
What technological advancement lowered prices and how?
Give an example of the lowered price
The mass production technique. With its moving assembly lines was pioneered by the ford car company in Detroit it produced cars faster this overproduction led to cheaper cars and therefore more sales.
The ford model t car
1914: £950
1925: £295
What industries did the boom in car industry help stimulate?
Steel,glass,rubber and service industries such as roadside gas stations and motels
What did the advertising industry help boom? And what was one way of advertising?
It fuelled consumerism.Marketing techniques became sophisticated eg sears magazine buy now pay later
How much more was businesses spending on advertising since 1914?
In 1929 advertisers were spending five times more than in 1914 because they knew that new mass media such as radio and Cinema ensured continued drama for products this caused mass production and in turn mass consumption meaning businesses were making more money
How much goods were spent on through credit?
In 1920 3.5 millions good were sold through credit
And in 1929 7 millions goods were sold through credit
What big company made investments in other countries? And how much of their product was used there?
The ford company Made investments in companies in the USSR,85% of tractors in the USSR were ford tractors
