T1 Boom and crash Flashcards
What technological innovation significantly impacted American industry in the early 20th century?
The introduction of the assembly line by Henry Ford in 1913
This innovation allowed for mass production, making the U.S. the world’s leading industrial nation.
What economic effects did World War I have on American businesses?
Maximized profits by supplying the Allies with food and weapons
This led to a shift from a debtor nation to the world’s main creditor.
What was the Republican belief regarding government intervention in the economy?
Minimal government
This belief influenced policies such as low taxes and high tariffs.
How did credit availability change from 1921 to 1929?
Credit extended by the U.S. Federal Reserve Bank increased from $45.3 billion to $73 billion
This increase in ‘cheap money’ boosted purchasing power.
What was the average wage increase in the U.S. from 1921 to 1929?
From $1,308 to $1,716 per year
This wage rise contributed to increased spending power.
What was the increase in the number of radios owned by Americans from 1920 to 1929?
From 60,000 to 10 million
This created a mass audience for new forms of communication and advertising.
What was the change in the number of department stores in the U.S. from 1920 to 1929?
From 312 to 1,395
This reflects the growth of consumerism during the economic boom.
What was the increase in business profits during the 1920s?
Rose by 80%
Share dividends also rose by 65% during this period.
What was the production efficiency achieved by Ford’s assembly line?
Reduced car production time from 12½ hours to 1 hour
This allowed Ford to produce 1 million Model Ts each year in the 1920s.
What percentage of U.S. manufacturing output did the car industry contribute by 1930?
13%
The industry also employed 4 million workers.
What were some of the materials heavily utilized by the car industry by the mid-1920s?
- 96% of the nation’s oil
- 75% of the nation’s plate glass
- 65% of the nation’s leather
- 80% of the nation’s rubber
- 20% of its steel
This indicates the car industry’s vast impact on various sectors.
What percentage of American families earned less than $2,000 a year during the economic boom?
60%
This statistic highlights the unequal distribution of wealth.
What was the total farm income drop from 1919 to 1921?
From $10 billion to $4 billion
This decline left many farmers unable to pay off loans.
What was the McNary-Haugen Bill?
A plan to help farmers by purchasing surplus commodities at a guaranteed price
It was passed by Congress but vetoed by Coolidge.
What was the significant date of the Wall Street Crash?
October 24, 1929
This date is known as ‘Black Thursday’.
What was the total loss in share values by the end of ‘Black Tuesday’?
$14 billion
This marked an all-time low for share prices.
What were some underlying weaknesses in the American economy leading to the crash?
- Unequal distribution of wealth
- Over-extension of credit
- Farming problems
- Trade problems
- Stock market speculation
- Federal economic policies
These factors contributed to the economic instability.
What did the Federal Reserve Board do in July 1928 that signaled economic issues?
Raised interest rates
This action indicated concerns about the economy despite ongoing stock market enthusiasm.
What was the consequence of the Wall Street Crash for banks?
A run on the banks occurred, leading to many closures
In 1929 alone, 659 banks closed with lost deposits of $200 million.
What demographic changes occurred in immigration patterns in the 1920s?
Increased immigration from Eastern Europe
Many immigrants were unskilled and illiterate, leading to fears among American workers.
What was the effect of the Russian Revolution on U.S. immigration policy?
Raised fears of communism, leading to anti-immigration sentiment
This contributed to the passing of restrictive immigration laws.
What was the Immigration Quota Act of 1921?
It restricted immigration by introducing a quota system based on the presence of nationalities in the US population in 1910.
This Act particularly reduced immigration from Eastern and Southern Europe.
What was the limit set by the National Origins Act of 1924 for Eastern European immigrants?
The limit was reduced to 2% of the existing population from the same background in 1890.
This Act excluded Asian immigrants completely.
Which groups were completely unrestricted by the immigration laws of the 1920s?
Mexicans and Canadians.
Asians were effectively banned from immigrating.