Reasons for prosperity 1920s

Question 1

Main reasons for prosperity

Answer 1

• government policy
• high tariffs
• fewer regulations
• foreign policy
• technical advances
• tax reductions
• easy credit

Question 2

Government policy - reasons for prosperity 1920

Answer 2

Laissez-fair, Calvin colidge and Andrew mellon (treasury secretary) believed in free market, and that money naturally filters down the people. so to increase living standards you should let the rich get richer.

Question 3

High tariffs - reasons for prosperity 1920

Answer 3

Fordney-McCumber act 1922, covered the cost of the difference between home and foregone products. Through out 20s tariffs prices went up. US huge profits from tariffs.

Question 4

Tax reductions - reasons for prosperity 1920

Answer 4

reduction in federal tax in 1924, 1926 and 1928. Mainly benefited the wealthy. During Melons 8yrs in office he gave out $3.5billion tax reductions to large scale industries and corporations. But Cooidges govts did act on surplus (money left over once they spent what they needed to) on $677million in 1925. Aimed to reduces national debt.

Question 5

Fewer regualtions - reasons for prosperity 1920

Answer 5

Koolcedge appointed businessmen as the team who motioned the regulation.
fewer people to enforce the regulations. Federal Trade Commission became unwilling to operate effectively, meaning business could do what they wanted. Laws effecting business were ignored, like price fixing. No laws again child labour or work hours, many weeks were 56hours and wages around 18cent.

Question 6

Federal trade commission

Answer 6

Body charged to ensure businesses were operating fairly.

Question 7

Foreign Policies - reasons for prosperity 1920

Answer 7

Coolidge avoided foreign affairs as much as possible. due to budget cutting and not wanting to see american troops get cauht up in foreign affairs.

Question 8

Technical advances about cars - reasons for prosperity 1920

Answer 8

advancements made that increased both quality and quaintly. Motor vehicle industry, but the end of the decade 23 millions cars were made. 65% of workers worked to buy a car.

Question 9

Henry Ford - reasons for prosperity 1920

Answer 9

mass production before 1920s. Model T 1908, ford wasn’t the model T to be for all americans, so in 1914 the model T went from $950 to $500 then came down again in 1925 to $ 290. production was now one every 10seconds.
composition was general motors and chrysler, ‘The big three’. 1927 Ford shut down and made the Model A.

Question 10

Why cars were so important and what the industry did - reasons for prosperity 1920

Answer 10

by 1929 the motor industry employed 7% of workers and gave out 9% of all wages. Goods could now be easily transported from factories to markets.

Question 11

Roads - reasons for prosperity 1920

Answer 11

Federal highway act 1921 gave responsibility for road building to central govt. and highways were being constructed at a rate of 10,000 miles a year. but it wasn’t enough in 1936 a report was done by Chief Designer in the Bureau modern roads built over the last 20years, say 25-50% of the roads were no longer a good enough standard because the amount of traffic had worn them down. Cars had also introduced service stations.

Question 12

Electrical consumer goods - reasons for prosperity 1920

Answer 12

mass production lead to production of labour saving products, the vacuum cleaner. 1912 2.4million electrical good were sold. rural america was without electrical goods.

Question 13

New business methods - reasons for prosperity 1920

Answer 13

growth of huge corporations, of scientific methods of management and advertising, which gained influences previously unimaginable.

Question 14

Growth of huge corporations - reasons for prosperity 1920

Answer 14

Large corporations, like firestone-rubber, were manufacturing businesses and were able to invest in and exploit the raw materials of the US. By 1929 the bigger 200 corporations had 20% of US wealth and 40% of the wealth was generated by business activity. Largest companies could dominate: cartel to fix prices, they could detriment output and prices throughout the industry.

Question 15

Management in corporations and development in business - reasons for prosperity 1920

Answer 15

management become complex as companies grew, ford become very old fashion he still tried to manage to whole company. Growth in business school: 1928 there were 89 .
New scientific management theories were put into places, particularly the ‘TIME AND MOTION’ work of W.Talyor, leaves of production increased.

Question 16

Advertising and salesmanship - reasons for prosperity 1920
Cinema:
Radio:

Answer 16

Mass media, cinema, radio brought a revolutions to advertising.
Cinema: 1928 there were 170 cinemas, 10 cent tickets. cinema guesser coped the appearance of the starts (consumer society, fashions matters.)
Radio: began when a KDKA station in Pittsburgh announced the results of the 1920 presidential election. Radios began mass production in1920, by 1929 there were 618 radio stations. Most of them were controlled by two companies, the National broadcasting company and columbia broadcasting system. estimated 50 million people listen to live commentary of 1927 Dempsey-Tunney fight.
1922 the New York radio station WEAF began an important trend when broadcasting the first sponsored programme. Then programmes began to cater to the appeal.

Question 17

The constant need to crate demand - reasons for prosperity 1920

Answer 17

The growth in the market needed a continuous market. it was no longer enough just to sell the model T, the boom need new thing frequently for people to buy.
Advertising become the decider between huge profit or low profit, having to differ your product from others.
High profit salesmen- Bruce Barton, who tried to convince people that consumer society and wealth went in hand the christian teachings, wrote a serious a books.

Question 18

Easy credit - reasons for prosperity 1920

Answer 18

1929 almost $7 billion worth of good were sold on credits- 75% of cars. Companies swell as individuals, almost everyone was in debt. It was assumed that everyone had good credit.

Question 19

Relationships the US had with foreign economies - reasons for prosperity 1920

Answer 19

As well as high tariffs, Businessmen were encourage to create link abroad, particularly in raw matrices that help technology growth development. Oil was bought from abroad, including Canada. The united fruit company had a larger budget in costa rica than the govern to costa rica. US exported vast amount of manufactured products. US dominated Canadian market, the electric industry was nominated by a US firm. USSR was dependent on the US for the first 5 year plan, 33% of all exported Fords tractors went to Russia. 85% of all tractors in Russia were Ford.
Private investments went from $7000billion in 1919, to $17200 in 1930.

Question 20

Federal high way act

Answer 20

1921

Question 21

Time and motion

Answer 21

W Taylor

Question 22

Fordney-McCumber act

Answer 22

1922 creating tariffs

Question 23

Bruce Barton

Answer 23

High profit salesmen- Bruce Barton, who tried to convince people that consumer society and wealth went in hand the christian teachings, wrote a serious a books.

Question 24

Fords factory was where and called ?

Answer 24

River rough in Detroit

Question 25

Fords workers were payed?

Answer 25

$5 an hour

Question 26

Tax cuts : name an act?

Answer 26

The revenue act

Question 27

Price fixing was done by what companies?

Answer 27

Chrysler
General Motors
Fords

Question 28

The united fruit company

Answer 28

The united fruit company had a larger budget in costa rica than the govern to costa rica.

Question 29

New York radio station

Answer 29

1922 the New York radio station WEAF began an important trend when broadcasting the first sponsored programme.

Question 30

WW1 role in the economic boom

Answer 30

Now demand for US goods, therefore production increased between 1916 and 1918 by 39%.
civilian workforce grew by 1.3million. Unemployment was low at 5%.
Farmer increased there exports by 300%.
byt 1919, USA overseas investments stood at $10 billion.