Other Reasons for the Boom Flashcards
What impact did the size of the US population have in the 1920s?
- Large population = large workforce
- Due to mass immigration in the 19th and early 20th century
How did the abundance of natural resources affect the US economy in the 1920s?
- Huge supply of oil, coal, iron ore
- Fuelled industrial expansion
- Supported economic boom
What production method was adapted and applied across various industries in the 1920s?
- Fordism, mass production techniques
- Pioneered by Henry Ford
- Used even in the film industry
How did an effective transportation infrastructure contribute to the economic boom?
- Trans-continental railroad
- Construction of road network
- Aided the flow of goods and services
What cultural belief encouraged entrepreneurship during the 1920s?
- The ‘American Dream’
- Hard work leads to success
- Powerful incentive which drove men like Thomas Edison and Henry Ford
How did immigrants influence the US economy in the 1920s?
- Worked diligently to improve their lives
- Became industrial leaders
- Contributed to economic growth
What was the effect of post-war consumerism on the economy?
- Embraced life and its pleasures
- Consumer spending characterised the Roaring Twenties
- Led to booms in cosmetic, film and entertainment industries
What economic policy did Republican presidents follow in the 1920s?
- Laissez-faire
- Reducing government involvement in the economy
Which government actions encouraged business investment in the 1920s?
- Deregulation of businesses
- Allowed market to regulate itself
- Tax cuts for the wealth
- Stimulated investment
How did anti-union legislation impact wages and profits in the 1920s?
- Anti-strike laws
- ‘Yellow dog’ contracts
- Wages low, profits high
What was the Fordney-McCumber Tariff Act of 1922?
- Protect US industries from foreign competition
- Imposed high tariffs on imported goods
What investment practice became widespread and contributed to the crash?
- Speculative investing
- Buying on the margin
- Expectation that prices would rise
How did the mentalities of Americans towards the stock market contribute to economic instability?
- Overconfidence
- Believing that everyone would profit
- Created a risky environment
How did the stock market participation change among the general public in the 1920s?
- Democratised: accessible to everyone
- Even shoe shine boys were playing alongside the wealthy
