Key Question 4: Economic Boom Flashcards
What did America have a plentiful supply of?
Natural resources such as timber, iron, coal, oil and land.
When did America enter WW1?
1917
How did America profit off WW1?
Selling resources to involved nations.
In the 1930’s how could one now differently purchase items?
Through credit or hire-purchase; Buying something through progressive re-payments.
How did companies encourage the purchase of items?
Advertising; by roads, radio, paper or cinema.
What method in purchasing food changed in the 1920’s?
Supermarket chains like J P Penney. Shopping also became fashionable.
What major development in knowledge came at this time?
The discovery and development of Electricity.
What drove electricity to be developed?
The construction of factories to support mass-production.
What electrical devices developed at this time?
Refrigerators, Washing Machines, Vacuum Cleaners and Radio sets.
What industry utilised mass production at this time?
The car industry
Who owned a major car manufacturing company?
Henry Ford
What was Henry Ford’s marketing philosophy?
Producing lots of affordable vehicles. Sell more but each with a smaller profit.
In 1925, What was the cost of a Ford car?
$290
In 1908, What was the cost of a Ford car?
$850
How many cars were owned by 1929?
23 million cars
What did most car industry workers earn?
$5- a good wage
How did the car industry boost the entire economy?
Construction of roads, petrol stations, hotels and restaurants.
Which three Presidents held office in the 1920’s?
Warren Harding (1921-1923) Calvin Coolidge (1923-1929) Herbert Hoover (1929-1932)
What commonality was between 1920’s Presidents?
All republican presidents holding a laissez-faire attitude- giving business’ freedom to expand.
How did Warren Harding influence the boom?
Reduced Tax
1922, Fordney-McCumber Tariff
Protectionist policies
How did Calvin Coolidge influence the boom?
Freedom of business to make profit
Laissez-faire attitude
How did Herbert Hoover influence the boom?
Laissez-faire
Individualism- lack of reliance on government
What was Herbert Hoover’s presidential promise?
“put a chicken in every cooking pot, and a car in every garage”
What does the acronym LACK PANTS stand for?
Laissez-faire, Assembly Line, Credit, Knowledge, Position in WW1, Advertising, New consumer goods, Tariffs, Share Confidence.
How were farmers affected during the 1920’s?
Overproduction led to falling prices. Many fell to debt and had to sell their farms and leave.
By 1928, what amount of farmers lived in poverty?
Half of all famers in America
In 1924 alone, how many farmers lost their farms?
600, 000
What work did some black people work as in the 1920’s?
sharecroppers
Why did black people suffer economically in the 1920’s?
Due to racial segregation, especially in Southern States.
Who was a Sharecropper?
A cheap black labourer who lived in great poverty.
How did immigrants fair financially in the 1920’s?
Poor education led to low wages and thus great prejudice.
How did coal fair in the 1920’s?
Overproduction led to falling prices and rampant redundancy in the industry.
How did ship building fair in the 1920’s?
Reduced demand led to thousands of redundancies.
How did the cotton trade fair in the 1920’s?
New synthetic fibres like rayon are introduced. It became very popular and fewer workers were required in its manufacturing.
