Reasons For Boom Flashcards
Which natural resources were abundant?
Coal, oil, wood and iron.
What were the 3 main policies of the Republican party?
Laissez-faire = government does not play a large role in the economy with low taxes and few regulations.
Rugged Individualism = people should earn according to merit and government should not help them.
Isolationism = the US had high tariffs protecting US firms.
How many shares were brought in 1929?
1.1 billion
What were the key innovations of Ford’s production line?
There was a conveyor belt, with workers specialising in a certain step in the production process. It was efficient as workers were more skilled at one task and saved time between changing tools and parts.
1913 - one car every 3 minutes
1920 - one car every 10 seconds
What are the key features of consumerism?
Huge rise in electrical goods brought. 1927 - 63% of US homes had electricity. 1923-29 wages rose 8%.
Define “buying on the margin”
Where stocks are brought with borrowed money by investors. This led to wild speculations in the stock market increasing stock prices.
1929-investors borrowed $8.5 billion to buy stocks.
Impact of WWI on the US
European countries brought goods and borrowed money from the US which led to massive returns when Europe began to recover. War led to mechanisation and technological advances.
Which industries boomed?
Construction - greater demand for buildings
Transport - the road network in the US doubled by 1930 and number of trucks tripled.
Department stores - grew with consumerism, first supermarket chain in the world was Piggly Wiggly.
Why did the stock market boom?
> Companies rose in value from consumerism
Banks have low interest so people turned to the stock market
Speculation to prices leads to increase
