The Achievement of Prosperity in the 1920s Flashcards
Why did American Businesses profit from the war in Europe during WW1?
American industries supplied the European powers with arms, ammo, food and other equipment.
American firms took over the export business while European countries were preoccupied with fighting.
They basically temporarily stole Europe’s customers by supplying them with American goods to earn sweet dollar dollar bills 💰
How did Henry Ford benefit America in the 1920s? Mention the benefits of his Moving Assembly line.
During the 1920s, the profits of American companies shot up. Consumer goods were produced in massive bulk at a very fast rate.
Henry Ford founded the Ford Motor Company in 1903. In 1914, he pioneered the first moving assembly line. Workers specialised in one area of the manufacturing process.
-Cars produced nearly 10x faster.
-Car prices decreased.
-Wages for production workers increased.
-More cars required more workers.
-Profits were soaring.
Motor Industry = Most important USA industry during the 1920s.
Other important Industries during the 1920s?
Metal, Road, Rubber, Electrical & Advertising.
Benefits of Mass Production?
- More jobs because of a high demand for goods.
- Higher wages and profits.
- Production of consumer goods doubled during the 1920s.
Which synthetic materials became popular in the 1920s?
Nylon and Rayon
Nylon was used in tights.
Rayon was used in string.
Which industry became popular in the 1920s due to it being a brand new method of power?
Electricity.
By 1930, there were Electricity Grids all across America to supply power.
Why did the Construction Industry Boom?
Skyscrapers!
There was more room above (vertically) than there was across (horizontally).
This meant more jobs for construction workers which benefitted America.
The Empire State Building was regarded as one of the modern wonders of the world.
How did America become involved in World War One? And what did Woodrow Wilson do when the war ended?
The USA became involved in the war in 1917.
American soldiers fought on the Western Front.
Woodrow Wilson organised peace talks and announced his ‘Fourteen Points’, one of which included the League of Nations.
What were the typical American Attitudes towards the League of Nations?
Most Americans weren’t keen on the League of Nations because they didn’t want to be involved in European politics.
Americans thought that their economy/government would pay the price of keeping the peace if they continued their association/involvement with European politics.
American men and money had been lost during WWI.
Why did Warren Harding win the 1920 election?
Warren Harding was a Republican who believed in the slogan ‘America First’.
Republicans were opposed to the League of Nations, this benefitted Harding’s election odds because the majority of American were opposed the League of Nations.
Harding’s word ‘Normalcy’ was invented to convey the idea of restoring America to how it was pre-war.
What were the Mass Production Techniques before the 1920s?
Farming Industry has been steadily growing since 1860s.
The USA was rich in natural resources (oil, timber, iron, coal).
Growing population meant that people were willing to work hard to earn their money (particularly immigrants).
Railway, Mining and Manufacturing Industries were all very strong.
Why did America not join the League?
American Attitudes were negative.
Woodrow Wilson was a Democrat who believed strongly in the League of Nations. Unfortunately, Republicans controlled Congress and declined America’s joining of the League.
Which political party dominated the 1920s? And what were the party’s top 5 policies?
The Republicans.
Top 5 Policies were:
-Isolationism = No foreign political disputes.
-Laissez-Faire = as little governmental interference with businesses as possible.
-Low Taxes = this provided business with the opportunity to expand and grow, rather than them having to give their profits to the government.
-Tariffs = Tax on imported goods to encourage Americans to purchase American goods which would benefit the economy.
-Rugged Individualism = the belief that people shouldn’t rely on Government aid to help them solve their financial or social problems
What was the Fordney-McCumber Tariff of 1922?
The American Government placed a tax on imported goods to encourage Americans to purchase American goods.
In the short term, it was effective; it positively impacted American Industry and helped created ‘boom’ conditions.
In the long term, it was ineffective because other countries retaliated by placing tariffs on American goods, resulting in America losing money.
