Roaring Twenties Flashcards
Why was there an economic boom in USA 1920?
WW1: created a demand for American produce; lifted her out of an economic depression (4.25 year boom)
How did arms industry change during and after WW1?
During: It developed
After: Was much larger than before and adapted to peacetime demands
How did USA share of international trade change?
Share of international change increases considerably during WW1, trend continued in 1920 (+15%)
How did USA role as a creditor change during WW1?
Transformed America into a major creditor;
Before: owed $3.7 billion
After: was owed $12.6 billion
Increased economic leverage over other countries.
How was steel production affected in the USA?
Increased in the USA by 25% between 1913-1920, at same time fell by 1/3 in other major steel producing countries.
How did WW1 influence methods of mass persuasion post-WW1?
Were adapted post-war by American companies, and used to create increased demand for consumer products.
How was America stronger post-war relative to other powers?
The American economy was stronger in absolute terms compared to other powers. Its competition had become bankrupt.
What were the physical long term factors for the economic boom?
The size of the USA and population
Rich in oil, coal, iron ore, lead, tin, copper and timber, which were used for mass production eg. Henry Ford
The trans-continental road massively aided the flow of goods and services.
What were the non-physical factors for the economic boom?
American dream
Poor people from Europe brought frustrated talents and capacity for hard work to the USA
Those who had survived WW1 wanted to embrace life and pleasure, which led to consumer spending etc.
What was the American Dream?
The belief that talent and hard work would be richly rewarded irrespective of social background. This helped to drive entrepreneurial spirit.
What was the role of the government in the economic boom?
Laissez-Faire , minimum government interference in the economy
What really stimulated investment in businesses during the boom?
Series of tax cuts for the rich between 1921-1926.
What really stimulated investment in businesses during the boom?
Series of tax cuts for the rich between 1921-1926. top1% of USA families earned 24% of all American income
What legislation did businesses benefit from during boom?
Anti-union legislation and court decisions, which outlawed strikes.
What were Henry Ford‘s new mass production techniques?
Made it possible for unskilled and semi-skilled workers to work on assembly lines.
Workers were situated along a conveyer belt which brought car framers and they could do their part before it moved along a conveyer belt to the next step.
What were the disadvantages of Ford‘s mass production techniques?
The job was very repetitive and monotonous. This could lead to mental problems, eg. Charlie Chaplin film Modern times.
Why did cars become affordable?
Ford was able to reduce time taken to build car to 90 minutes. This brought the price down.
What other industries benefited from increase in demand for cars?
Caused a boom in the glass, rubber, steel and paint industries, and the oil industry expanded.