roaring twenties Flashcards
Economic benefits:
impacts on the US industry
factory production in the US grew by 35%
Largest growth areas - steel industry. In 1910, 26.1 million tonnes of steel were produced in America whilst in 1920, 42.1.
Natural resources . coal, petrol, and gas production
Transport - shipbuilding increased + railroads were modernized for transport
Consumer goods - American brands, e.g. cigarettes became popular in Europe
Economic benefits:
Agriculture in the 1920s
Many European farmers had to fight in the war so production in Europe dropped - creating huge global demand for agricultural goods
When Europe started to recover, America supplied 30% of the world’s wheat and 55% of its cotton
Prices for their goods rose 25% during the war
The average income of a farmer who owned a farm rose by 30%
Farmers began to use machines + tractor sales increased
Farmers took out loans in order to expand their farms –> increasing production of wheat
Economic benefits:
Workers
Demand for industrial and agricultural goods meant more workers were needed
The number of people at work increased by 1.3 million during the last 2 years of the war
Many experienced wage increases - e.g. wages of unskilled workers increased by 20% during the war
More jobs for people from other backgrounds since replacements for soldiers were needed –> women joined the workforce + black Americans moved to industrial jobs in the northern states
Economic benefits:
Limitations
European farming had recovered by 1920 - demand from the USA dropped
Many new workers - mainly women lost their wartime jobs as a result of soldiers returning
Race riots as the number of black workers increased
Farmers who had borrowed money to expand production struggled to pay back their loans since demand began to drop
Reasons for economic boom in the 1920s
New production methods that increased production rates
Availability of credit to buy new things
Advertising - encouraged consumerism
Unemployment never rose above 3.7% until 1929
Reasons for economic boom in the 1920s:
Henry Ford and mass production
It took 12 hours for skilled workers to produce a Model T car in a workshop but after mass production on one of its most efficient days, a Model T car was produced every 10 seconds.
Mass production - workers lined up a conveyor belt increasing efficiency
As a result of these innovations, a Model T car went from costing $925 to $295 - causing a huge increase in demand for cars
Increased production of this industry helped the economy boom since this construction required products from other industries such as steel, rubber, glass, and textiles.
Reasons for economic boom in the 1920s:
Hire Purchase
In 1919, Alfred Sloan set up a credit agency for ordinary customers. This consisted of people paying for products in installments until they owned them. This was known as hire purchase.
Reasons for economic boom in the 1920s:
Advertising
Advertising became a major business. Companies used big posters and color pages in newspapers + magazines to attract customers - they would overwhelm them. Some even created new markets for their goods, such as Listerine rebranding their product from an antiseptic to a mouthwash.
1929 - 618 radio stations and most of these ccarried adverts or were sponsored by big brand names.
Americans spent part of their leisure time listening to adverts.
1929 - $2 billion had been spent on advertising and 600,000 people were hired into this new industry.
new advertising methods created a consumer society.
More demand –> more production –> more jobs –> more money to spend
Reasons for economic boom in the 1920s:
Consumerism
Advertisers + marketing companies tried to encourage consumerism - e.g. disposable handkerchiefs were created instead of using reusable ones.
Shopping became a leisure activity
1929 - 1,395 department stores to choose from
5,000 refrigerators were sold in 1921 but in 1929, 1 million were sold
$850 million per year being spent on radio equipment
Reasons for economic boom in the 1920s:
Stock market popularity
Between 1927 and 1929, 1.5 million ordinary Americans were involved in buying shares in the American stock market on Wall Street
They either used their own money or a method called “buying on the margin” - borrowed money from a bank in order to invest in shares and then paid back, receiving a profit.
People became shareholders - they were confident shares would go up since they did until 1927.
In 1925 - around 500,000 shares were available but by 1929 there were 1,127,000.
More businesses had more money - able to hire more people
Social impacts of the roaring twenties:
Leisure industry
Americans spent $1.8 billion more on leisure activities in 1929, than a decade before
Social impacts of the roaring twenties:
Cinema
1929 - 40 million cinema tickets were sold each week but this number more than doubled by 1929.
They produced film in colour by 1922 and introduced sound by 1927.
Developed animation techniques - Walt Disney’s movie was the first to achieve general success in 1928.
Most saw films on a weekly basis even if they didn’t have a TV at home.
$2 billion in cinema tickets each year-
Celebrities of men such as Rudolph Valentino and Charlie Chaplin.
Hays code - criticised the film industry for being immoral so created a code for films until 1968.
Social impacts of the roaring twenties:
Jazz and dancing
‘Jazz Age’
Mixture of black and white American folk music that had developed in multi-racial cities such as in New Orleans
International fame
Jazz became popular with white and black people and made big stars like Louis Armstrong
Opposition - associated immoral behavior amongst younger people
Inspired new forms of dancing - the Charleston - on-screen stars like Joan Crawford
Marathon dancing
Social impacts of the roaring twenties:
Sport
More leisure time - watched favorite sports
1921 - 300m000 went to watch the baseball World Series
Huge number of sporting heroes
Social impacts of the roaring twenties:
Radio and Advertising
Radios became very important - in 1910 there were 60,000 radios whilst in 1929 there were 1 million
At first hundreds of local stations but then became part of networks such as NBC - USA began to hear similar views, news, and adverts
Some women began buying Max Factor makeup for fun
New hobbies - photography, using their new Kodac cameras