The Boom

Question 1

How did the USA boom?
WWI

Answer 1

-WWI = over 100,000 Americans dead, yet they didn’t suffer as bad as Europe
-USA led production of medicines, dyes and basic goods at the end of the War
-America sold goods (guns, resources, goods) to allies ($32 billion)

Question 2

How did the USA boom?
Government

Answer 2

Republican govt. introduced:
-Tariff that taxed imports (USA goods more popular = more jobs)
-Tax cuts on rich (they could invest + open new businesses)
-Low tax (Americans spent more money)
-Laissez faire (people left alone to spend money)

Question 3

How did USA boom?
consumerism

Answer 3

1927 = 70% homes had electricity
-People bought vacuums, fridges, radios, phones
-Created jobs in factories

Question 4

How did USA boom?
industry

Answer 4

-Car making = boost of steel, glass, rubber industry
-Mass production = quicker to make, cheaper to buy

Question 5

How did USA boom?
advertising

Answer 5

-Colourful billboards, magazines, newspapers used to advertise
-Catalogues delivered to Americans homes (people bought what they didn’t need)
-Hire purchase = more people could buy expensive things

Question 6

How did USA boom?
mnemonic

Answer 6

S pending/stocks
H ire purchase
A dvertising
M ass production

Question 7

How did consumer goods grow
1919 vs 1929

Answer 7

Cars - 9mil —> 26mil
Radios - 60,000 —> 10million
Telephones - 10mil —> 20mil
Fridges - x167%

Question 8

The Ford Motor Company

Answer 8

1913: assembly line = quick+cheap
1911= $800, 1928 = $300
15million bought between 1911 and 1929

Question 9

Impact of boom on motor industry

Answer 9

Federal Road Act 1916 = intense road building
1929 = double the amount of road

Question 10

The Stock Market

Answer 10

“Playing the stock market”