The 1920's economic boom

Question 1

What was unemployment like between 1922-29

Answer 1

Never rose above 3.7%

Question 2

What did America move towards after the fist world war

Answer 2

Isolationism, Harding promised a “return to normalcy” in his 1921 campaign election

Question 3

What isolationist policy was introduced to guarentee a domestic market for products

Answer 3

The 1922 Fordney-McCumber Act

Question 4

What did the Fordney-McCumber Act do

Answer 4

(1922) Raised tariffs on imported goods to cover the difference between domestic and foreign production costs. Guarenteed manufacturers a domestic market

Question 5

What party was in power during the 1920’s

Answer 5

The Republican Party, with Harding 1921-23, Coolidge 1923-29 and Hoover from 1929-33

Question 6

What was the policy of government during the 1920’s

Answer 6

laissez faire

Question 7

What was laissez faire

Answer 7

It was the idea of as little government intervention in the economy as possible, allowing the free market to operate with minimal restrictions

Question 8

When were federal taxes lowered

Answer 8

1924,26 and 28

Question 9

How much did tax reductions aid large scale industrialists and corporations

Answer 9

They recieved $3.5 billion in tax reductions between 1921 and 1930

Question 10

What laws were ignored to the benefit of big business

Answer 10

Laws concerning sharp business practise were often ignored, such as price fixing between companies to prevent fair competition. This lack of regulation led to child labour in southern textile mills where a 56 hour week was common

Question 11

Who was the creater of mass production (for all intents and purposes)

Answer 11

Henry Ford

Question 12

How many more cars were there in 1930 compared to 1920

Answer 12

There were 7.5 million vehicles on the road in 1920, against 27 million by the end of the decade

Question 13

By the end of the 1920’s, how many cars were there to people

Answer 13

One car for every five people

Question 14

Who were the three big motor firms

Answer 14

Chrysler, Ford and General Motors

Question 15

What was the ‘Middletown’ study

Answer 15

A study published in 1929 (with data from before this) which aimed to look at a typical american community, using the fake town called ‘Middletown’

Question 16

How many residents of the Middletown study owned a car

Answer 16

Half of those surveyed owned a car, while only one third had a bathtub

Question 17

How many workers were employed by the motor industry

Answer 17

7% of all workers

Question 18

How did the motor industry contribute to the recession of 1927

Answer 18

Ford closed temporarily and his workforce was laid off, as well as a loss of business by companies which provided components to Ford

Question 19

What act led to greater road building

Answer 19

The Federal Highway Act of 1921 gave responsibility for road building to the central gov, with 10,000 miles a year of highway being built by 1929. This still wasn’t enough to keep up with vehicles

Question 20

How many labour saving electrical devices were sold in 1929

Answer 20

160 million

Question 21

What was inflation like in the 1920’s

Answer 21

Never higher than 1%

Question 22

How did the working week change in the 1920’s

Answer 22

47 hrs/week in 1920 - 44 hrs/week un 1929

Question 23

How did real wages change during the 1920’s

Answer 23

Rose 14% from 1914 to 22

Question 24

How much did industrial goods production rise in the 1920’s

Answer 24

50% between 1922-29

Question 25

How did the string of republican presidents contribute to the boom

Answer 25

3 Republican Presidents meant that there was little government involvement in running the economy

Question 26

When were federal taxes reduced

Answer 26

In 1924,26,28 - benefitted the rich

Question 27

What 1920’s policy went against laissez faire

Answer 27

Road building, with the 1921 Federal Highway Act

Question 28

How did advertising contribute to the 1920’s boom

Answer 28

Advertising rapidly developed in order to create demand. They hired psychologists to design campaigns to target specific groups.

Question 29

What did 1920’s advertising focus on

Answer 29

Emphasised slogans, brand names, celebrity endorsement and consumer aspiration. Many Americans felt they couldn’t manage without advertised products

Question 30

How did Easy credit contribute to the boom

Answer 30

Hire purchase fuelled consumer boom. People could aquire goods before they purchased them. However instalements were more than if they payed outright, and if they were missed goods could be reposessed

Question 31

In 1929, how many goods were bought on credit

Answer 31

$7 billion goods

Question 32

In 1929, how many cars were sold on credit

Answer 32

75% of cars

Question 33

What were some limits to 1920’s prosperity

Answer 33

Farmers, Women and Black Americans

Question 34

How were Farmer’s left out of the 1920’s prosperity

Answer 34

During WW1 prices rose 25%, but afterwards lower demand led to falling prices. This meant that 66% of farms operated at a loss.

Question 35

Who suffered particularly badly from failing farms

Answer 35

Wage labourers and sharecroppers

Question 36

Why did farming prices fall after WW1

Answer 36

-Prohibition cut demand for grain used for alcohol
-Growth of synthetic fibres replaced demand for ones like cotton
-Use of more efficient methods and machinery meant there was production surplus

Question 37

What kind of farmers were most likely to go bankrupt

Answer 37

Small-Scale farmers, as large agricultural businesses afford to take out loans to produce more efficiently, which squeezed small farmers more. The average rate of forclosure rose 17.4 per 1000 by 1926

Question 38

What was the average foclosure rate for small farms in 1926

Answer 38

17.4 per 1000

Question 39

How were women left out of the 1920’s prosperity

Answer 39

They didn’t enjoy improved careers, in 1920 (specifically), women didn’t have the right to vote, the women recieving a college education fell 5% and most had low paid menial jobs

Question 40

What sort of work did women have in the 1920’s

Answer 40

Many had jobs as clerical workers and salespeople, with 700000 female domestic servants

Question 41

What demonstrates the low number of high paid jobs held by women

Answer 41

in 1930, there were only 150 female dentists and less than 100 female accountants

Question 42

How did Black Americans miss out on the 1920’s prosperity

Answer 42

Discrimination in housing and employment led to ghettoisation, many lived in south and were sharecroppers

Question 43

What percentage of the population was Black

Answer 43

10%, with 85% living in the South, which was the poorest region in the US

Question 44

What did migration of Black Americans to cities cause

Answer 44

Ghettoisation and populations swelling. 50000 in 1914 to 165000 in 1930