The 1920's economic boom Flashcards
What was unemployment like between 1922-29
Never rose above 3.7%
What did America move towards after the fist world war
Isolationism, Harding promised a “return to normalcy” in his 1921 campaign election
What isolationist policy was introduced to guarentee a domestic market for products
The 1922 Fordney-McCumber Act
What did the Fordney-McCumber Act do
(1922) Raised tariffs on imported goods to cover the difference between domestic and foreign production costs. Guarenteed manufacturers a domestic market
What party was in power during the 1920’s
The Republican Party, with Harding 1921-23, Coolidge 1923-29 and Hoover from 1929-33
What was the policy of government during the 1920’s
laissez faire
What was laissez faire
It was the idea of as little government intervention in the economy as possible, allowing the free market to operate with minimal restrictions
When were federal taxes lowered
1924,26 and 28
How much did tax reductions aid large scale industrialists and corporations
They recieved $3.5 billion in tax reductions between 1921 and 1930
What laws were ignored to the benefit of big business
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
Who was the creater of mass production (for all intents and purposes)
Henry Ford
How many more cars were there in 1930 compared to 1920
There were 7.5 million vehicles on the road in 1920, against 27 million by the end of the decade
By the end of the 1920’s, how many cars were there to people
One car for every five people
Who were the three big motor firms
Chrysler, Ford and General Motors
What was the ‘Middletown’ study
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’
How many residents of the Middletown study owned a car
Half of those surveyed owned a car, while only one third had a bathtub
How many workers were employed by the motor industry
7% of all workers
How did the motor industry contribute to the recession of 1927
Ford closed temporarily and his workforce was laid off, as well as a loss of business by companies which provided components to Ford
What act led to greater road building
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
How many labour saving electrical devices were sold in 1929
160 million
What was inflation like in the 1920’s
Never higher than 1%
How did the working week change in the 1920’s
47 hrs/week in 1920 - 44 hrs/week un 1929
How did real wages change during the 1920’s
Rose 14% from 1914 to 22
How much did industrial goods production rise in the 1920’s
50% between 1922-29
How did the string of republican presidents contribute to the boom
3 Republican Presidents meant that there was little government involvement in running the economy
When were federal taxes reduced
In 1924,26,28 - benefitted the rich
What 1920’s policy went against laissez faire
Road building, with the 1921 Federal Highway Act
How did advertising contribute to the 1920’s boom
Advertising rapidly developed in order to create demand. They hired psychologists to design campaigns to target specific groups.
What did 1920’s advertising focus on
Emphasised slogans, brand names, celebrity endorsement and consumer aspiration. Many Americans felt they couldn’t manage without advertised products
How did Easy credit contribute to the boom
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
In 1929, how many goods were bought on credit
$7 billion goods
In 1929, how many cars were sold on credit
75% of cars
What were some limits to 1920’s prosperity
Farmers, Women and Black Americans
How were Farmer’s left out of the 1920’s prosperity
During WW1 prices rose 25%, but afterwards lower demand led to falling prices. This meant that 66% of farms operated at a loss.
Who suffered particularly badly from failing farms
Wage labourers and sharecroppers
Why did farming prices fall after WW1
-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
What kind of farmers were most likely to go bankrupt
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
What was the average foclosure rate for small farms in 1926
17.4 per 1000
How were women left out of the 1920’s prosperity
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
What sort of work did women have in the 1920’s
Many had jobs as clerical workers and salespeople, with 700000 female domestic servants
What demonstrates the low number of high paid jobs held by women
in 1930, there were only 150 female dentists and less than 100 female accountants
How did Black Americans miss out on the 1920’s prosperity
Discrimination in housing and employment led to ghettoisation, many lived in south and were sharecroppers
What percentage of the population was Black
10%, with 85% living in the South, which was the poorest region in the US
What did migration of Black Americans to cities cause
Ghettoisation and populations swelling. 50000 in 1914 to 165000 in 1930
