Prosperity in the 1920s Flashcards
Give some examples of this prosperity.
Sales of consumer goods rose from 9 million to 26 million from 1919 to 1929.
New technology emerged in houses, bought on easy credit.
Industry thrived, the production line was introduced, road building progressed introducing the suburb.
The car was invented.
Te passenger aircraft was introduced and by 1930 there was 162,000 flights a year.
What were the 6 reasons for prosperity?
Government policies. Technical advances. New business methods. Easy credit. Influence in foreign economies. State of mind.
What’s the cycle of prosperity?
Employment and wages are increased.
Disposable wealth is increased.
The demand for goods increases.
What method did Henry Ford introduce into his factories?
Scientific Management/ Taylorism.
The idea was to set goals and standards for the workers e.g. How long it would take to make something, and they would then be given rewards. The aim was to increase productivity and it raised real wages for workers.
Henry Ford introduced the production line.
Raised wages to $5 a day to prevent the unionisation of workers.
Production costs were reduced as there as no need for training as employees were happy. Profits ts doubled from $30 million to $60 million from 1914-1916.
Give some statistics about Henry Ford.
The Model T was introduced in 1908
In the old factory, cars were produced in 14 hours, whereas is way now 1.5 hours (since the factory’s opening in 1910).
Made 9,000 cars a day, and the costs fell from $850 to $360 from 1908-1916.
What Warren Harding a Democrat or Republican president?
Republican
Name some of Harding’s successes during his terms.
1921- Budget and Accounting act which meant that departments had to present their budgets to the president for approval and by 1922, expenditure had fallen to $3373 billion.
Approved the Sheppard-Towner Maternity aid act which Gave federal aid to states to develop infant and maternal health programmes.
Pressured US steel companies to introduce an 8 hour day for the workers.
Spoke out again racial segregation in Alabama, the homeland of the racist south.
Name some of President Harding’s weaknesses.
Appointed some dodgy men, many in his close circle of friends, called the “Ohio gang” and by his death in 1923, there was a number of enquiries into their activities. Many of the men were actually arrested for acts relating to corruption and several committed suicide before they could be brought to trail. One example is Charles Forbes who was jailed for 2 years for embezzling the government, it’s estimated that he stole about $250 million.
How did Relublican policies benefit the boom of the 1920s?
Allowed bis businesses to operate freely of regulation.
Coolidge and Mellon both believed in ether idea of a “free market” which allowed the economy to run itself with minimal government intervention.
They placed high tariffs on foreign goods which encouraged people to invest in eyes US economy.
How did the high tariffs benefit America?
Fordney McCumber Act in 1922. It was almost always cheaper to buy American goods. It made foreign goods more expensive than American even when it could have been cheaper to produce the goods cheaper elsewhere. Foreign trade was reduced as a result of this but domestic demand was raised.
A Tariff Commission was created to advise the President on tariff rates and the president was given the ability to vary the rates by 50%.
How did the tax reductions of the Federal government help the boom?
Mainly benefitted the wealthy. Those who had paid 77% now paid 25%.
Mellon gave tax reductions totalling $3.5 billion dollars in his eight years in office, to large scale businesses and corporations.
The government actually increased it’s total income as a result of the boom though. The national debt decreased too.
However, it made little difference to those that were too poor to pay taxes in he the first place.
How did the few regulations of the republican policies help the boom?
Many businesses and corporations were left unhindered and able to do as they wished. The Federal Trade Commission were supposed to ensure businesses were operating fairly but they were late to act or didn’t act at all. When the government did prosecute, the offenders usually won the appeal. Many people welcomed less government intervention.
How did the Republican foreign policies aid the boom?
Coolidge largely tried to getting involved as Americans didn’t want to see troops being sent abroad.
Disputes with Mexico over the rights of American businesses go own land there were solved with diplomacy.
US investors were willing to invest in Japan at the time that they were belching more aggressive towards China. Rather than investing in Chinese development, American investors were investing in the South. Manchuria railroad which was owned by the Japanese. They were so interested in making a profit that they didn’t help the persecuted Chinese, they didn’t listen to protests from the State Department which looked after foreign affairs.
How did the motor industry impact industry in the US?
15% of all steel to cars 80% of all rubber went to cars 75% of all glass went to cars. Fuel was needed Roads were needed By 1929, 10% of all workers were involved in the motor industry.
Give some statistics regarding the rise of consumer goods in the 1920s.
By 1930:
85% of homes had electricity
Over 30% of all homes had vacuum cleaners
