study - Chapter 3 - 3. industrialisation, consumerism and entertainment Flashcards
Why was there prosperity in the 1920s
The prosperity of the 1920s is due to several factors such as favourable gov. policy to big business:
- high tariffs
- tax reductions
- benevolent foreign policyu
- technical advances
- improvements in business organisation
- easy credit
- advantageous foreign markets
In addition to laissez-faire economic policy, what were some of the other factors that supported the prosperity of the 1920s
High tariffs
- Forney-McCumber Act 1922
- raised tariffs to cover the difference
between domestic and foreign
production costs.
- In almost every case it became cheaper for American consumers to buy goods produced within the USA than abroad.
historian opinion:
The tariff imposed by the Fordney-McCumber Act 1922 meant that for some products import duties were so high that domestic producers were given an almost guaranteed market
Tax reductions
- these benefits benefited the wealthy
- $3.5 billion to large industrialists
Fewer regulations
- child labour in the South where a 56 hour week was common and wages rarely rose to more than 18c/hour
Foreign policy
What were some of the technical advances
impact of growing industrialisation in the production of automobiles?
The moto vehicle industry grew dramatically in the 1920s. By the end of the 1920s there were 23 million cars on the road and the automobile indutry was the biggest in the USA.
price per automobile
1914: from $950 to $500
1920: 1.25 million cars/year - one every 60 seconds
1925: $290 - production 1 every 10 seconds.
total cars from all manufacturers in USA
1930: 26.5 million cars
Ford introduced $5 minimum wage/day
How did growing industrialisation create tensions within religious fundamentalist circles?
courting couples, family outings tacking place of church attendance, 20 000 annual death toll, stimulation of trade unionism.
How did Ford (growing industrialisation) impact on the economy and workers (social group)?
In the 1929, the automobile industry employed 7% of all workers and paid them 9% of all wages.
How did growing consumerism (growth of the automobile industry) contribute to impacts on American industry and society?
The automobile industry consumed 90% of petroleum products (mostly gasoline), 80% of rubber, 20% of steel, 75% of plate glass and 25% of machine tools.
mass manufacturing of the automobile enabled more efficient and arger scale manufacturing. This provided Americans the ability to travel particularluy from the cities to the countrisdide leading to tensions between regional and city travellers with poorer communities residing in cities, unable to afford to move out and day trips for the middle class –> disparity
–> tensions
Hence consumerism in relation to automobiles had a significant impact on American society which led to increased movement and disparity between demographics, as well as the establishment of new industries and labour forces that provided new job opportunities and became dependent on the success of the automobile.
How did growing industrialisation impact federal legislation?
Federal Highway Act 1921
10 000 miles of road per year by 1929
Motor vehicles created the growth of new services such as ___, ____, ____, along with further pressure on other industries such as ___, ___
garages
motels
petrol stations
________________________
Tyre producing company Goodrich
raw material companies , consuming 90% of petroleum products (mostly gasoline), 80% of rubber, 20% of steel, 75% of plate glass and 25% of machine tools.
Name an example of the impact of industrialisation that is not the car
The number of truck registrations increased from less than 1 million in 1919 to 3.5 million by 1929.
1929: 15 billion gallons of petrol were used and 4.5 million new cars were sold
Consolidation of business
1929 the largest 200 corporations possessed 20% of the nations wealth and 40% of the wealth generated by business activities.
Holding companies became prominent with Samuel Insull built a vast empire based on electrical supply, controlling 111 different companies. Many businessmen turned up on the boards of directors o fnumerous companies.
Statistics on growth and influence on consumerism and entertainment in relation to cinema
1928 - 17 000 cinemas in the USA
million attending
Seeing the opportunity for advertising
“With millions of cinema-goers aching to copy the appearamces and lifestyles of the stars, the potential for advertising was enormous. The big producers were not slow to exploit this, and the time between the features was soon filled with commercials”. - Clements
Statistics on growth and influence on consumerism and entertainment in relation to the radio
By 1929 there were 618 radio stations throughout America.
estimated 50 million people listened to live commentary on the 1927 Dempsey-Tunney fight.
The costs associated with running radio were covered with the profits from advertising. This reveals the exploitation of radio as a means of extending advertsing and thus profits. it also became critical in the advertising process of consumer goods with “most products virtually the same in quality…”, advitising became deciding factors in the market.
Easy credit
“The massive consumer boom was financed largely by easy credit.
1929 almost $7 billion worth of goods were sold on credit, including 75% of cars and half of major household appliances.
this often led to problems if the borrowers took on debts they could not repay. Both indviduals and companies were expanding using credit with the banks offering little questions
“Banks and loan companies seemed to be falling over backwards to lend money” - Clements
