The Boom Flashcards
what caused the boom? [5]
- republican policies
- impacts of WW1
- Consumer society
- Technological advances
- Ford and the motor industry
what were the technological advances
-plastics such as bakelite were developed
-development of electricity
what were the uses of plastics?
used for the household products such as radios and used for mechanisation such as automatic switch boards and the assembly line allowed
how did technological advances cause the economic boom?
-made production of goods faster and cheaper
-boosting industries
how did technological advances make production faster and cheaper ?how did this cause the boom?
-the creation of electricity provided a cheap and efficient source of power for factories
-the development of assembly line revolutionised industries
-decreased the production time
-This allowed for faster production -increased the output and efficiency of manufacturing for cheaper
-this allowed factories to save money and time
-mass production made goods more affordable
-more sales
-aided the economy
how did technological advances boost industries? how did this cause the boom?
-plastics were used in mechanisation eg. automatic switches
-the development of mechanical appliances such as the assembly line revolutionised industries
- allowed products to be mass produced
-products more affordable
-fuelled consumer demand which boosted sales
-increased demand boosted industries involved in the production of goods eg. rubber
-created jobs in those industries
(economic and social impact)
how did republican policies cause the boom?
-encouraged business growth
-reduced taxes
how did republican policies encourage businesses growth?how did this develop the boom?
-tariffs on imported goods eg. Fordney Mccumber(1922) made imported goods more expensive
-Americans more likely to buy home-based products
-increasing demand so boosted industries involved in the production which fuelled the overall economic boom
-created jobs in those industries
(economic and social impact)
-laissez faire approach mean’t businesses were free to make profit without strict regulation so businesses were free to make profit
(economic impact)
how did reduced taxes cause the boom?
-reduced taxes for businesses and the wealthy
-more money for the wealthy to invest in jobs and factories
-more disposable income to invest which aided the industrial growth and created jobs
(economic and social impact)
how did WW1 cause the economic boom?
-created the conditions for America to become the World’s leading economy
-created jobs
how did WW1 create the conditions for America to become the World’s leading economy
-late entry to war allowed USA to prosper meant less financial and social impact (less lost compared to other countries )
-also allowed America to prosper:bank loans to other countries and selling munitions to France and Britain created jobs and made businesses rich
-overtook European and produced a high percentage of basic goods by 1920
-investors exploited these resources which helped the economy
when did USA enter the WW1?
1917
when was WW1?
1914-1918
what did American banks loan to allies and what did America sell?
money for food,weapons and equipment and sold munitions to France and Britain
what German markets did America overtake?
became leading manufacturer of chemical,medicine dyes and materials
what percentage of the World’s petrol was produced by America?
70%
why did America enter WW1 later?
due to their policy of isolationism
what percentage of the World’s electricity was produced in America?
42%
what percentage of the World’s coal was produced in America?
coal
what percentage of the World’s corn was produced in America?
78%
what percentage of the World’s cotton was produced in America?
55%
how was America able to overtake German markets during WW1?
-Allied nations would not buy from Germany
-Germany could not afford to mass produce goods(at war)
-so gap in the market
-America was able to fill gap as they had a vast range of raw materials such as iron in places such as Minnesota
-businesses exploited materials produce goods such as steel and medicine
how many American soldiers died in WW1?
100,000(less than other countries)
how did the consumer society cause the boom?
-boosted sales
how many cars were sold in 1919 compared to 1929?
9 million to 26 million
how many telephones were sold in 1919 compared to 1929?
10 million to 20 million
how many radios were sold in 1919 compared to 1929?
60,000 to 10 million
how did effective advertising boost sales?
-effective advertising increased desire to own latest good
-catalogues meant more customers (ppl in countryside could see the goods and then get them delivered)
-boosted sales
what tariff made imported goods more expensive?
Fordney McCumber(1922)
how many cars were bought on consumer credit?
6/10
how many people owned shares by 1929?
20 million. This was 5 times more than in 1920
how did people learn how to make effective advertising?
learnt how to create effective advertising through war-time propaganda
what were forms of effective advertising?
colourful billboards,newspapers and magazines
how are republicans policies and consumer confidence linked?
the republican attitude of laissez faire mean’t that there was no regulation on buying on credit as it allowed the growth if businesses due to more demand which was a priority
the tariffs in imported goods meant people were more likely to buy home-based goods which boosted American industries
how is WW1 and consumer confidence linked?
advertisers learned effective methods through wartime propaganda
how are technological advances linked to consumer confidence?
technological advances such as the assembly line mean’t that goods such as vacuums could be mass produced. This mean’t that the goods were produced faster and could be sold for cheaper. This allowed more Americans to the goods which created a larger market which boosted sales
how did the motor industry impact other industries?
-Ford developed the assembly line which revolutionised the motor industry and was soon adopted by other businesses
-the motor industry led to the expansion of other industries involved in the production of the car
in what ways were industries such as the leather industry impacted?
75% rubber and glass and 20% of steel and 90% of petrol was used for the motor industry which created more jobs in these industries as they were in high demand
how did the motor industry contribute to the boom?
the motor industry contributed to the boom by stimulating growth in other industries?
how many people worked in the car industry by 1925?
500,000. By the 1920s,the motor industry was the USA’s biggest employers
when was the assembly line developed and where?
1913 in detroit
what car did Ford produce?
due to all the job opportunities, workers could spend their money on goods such as the vacuum
huge demand in these goods created jobs in factories
how many Model T’s had been bought between 1908-1925?
15 million
how did mass production impact the affordability of the ModelT? How did the affordability affect the availability?
the prices fell from $800 in 1911 to $295 in 1928. Due the fall in price, more people could afford the Model T so 1/5 in America had a car compared to the 1/43 in Britain
what technological advancement meant goods could be produced faster?
the assembly line
how did the assembly line affect production of cars?
made the production so much faster than by 1927, one car came off the production line every 10 seconds
how did cars affect freedom?
car owners had a greater sense of freedom as they could go wherever whenever and could live in places like the suburbs and still commute to work(boosted the construction industry)
how was the road construction industry impacted by the motor industry?
due to the large amount of people who owned cars(15 million between 1908-1925) roads were paved. By 1930, the amount of miles paved doubled. Due to the high demand for more roads,more jobs were also created
how did buying goods impact the boom?
due to all the job opportunities, workers could spend their money on goods such as the vacuum
huge demand in these goods created jobs in factories
what are limitations of the motor industry?
there were some negatives to the boom in the motor industry such as traffic jams, accidents and pollution
who didn’t benefit from the economic boom?
- African Americans
- old industry workers
3 farmers - indigenous Americans
why did farmers not benefit?
- WW1
- taxes
- machinery
- loans
what were problems faced by farmers?
-less demand for their products
-increasing debt
-overproduction
-eventual unemployment
how did WW1 impact farmers?
less demand for American imports post-War as European markets began to recover. This meant farmers struggled to sell overseas and lost their market
how did republican tariffs impact farmers?
some countries added tariffs like the Fordney McCumber(1922) in response to America’s taxes on imports which meant farmers struggled to sell overseas and lost their market
how did the total farming income change?
$22 billion in 1919 to $13 billion in 1928
how did technological advances impact farmers?
due to technological advancements, machinery such ad combine harvesters were used in farms (which were payed for by loan) to increase the speed of production. However due to efficiency of the machinery compared to the demand, the products were overproduced
-many products remained unsold
-to combat the low demand, the prices were reduced
how were wheat prices effected by overproduction?
wheat was reduced by 50%
how did loans impact farmers?
some farmers borrowed money from banks to buy machinery and now couldn’t afford to repay loans
so they had to sell their farm to raise money or they were evicted
so by 1924 600,000 farmers lost their farms
due to the decline in the farming industry and the loss of farms, 6 million migrated to cities
many were unemployed
what problems did old industry workers face?
-overtaken by rival industries
-mines were shut down
how were materials such as cotton and wool affected by rival industries?
cotton and wool were in low demand due to the result of man-made materials such as rayon
cotton and wool prices fell
wages dropped so 42% of old industry workers were under the poverty line
how did technological advances affect coal miners?
due to new forms of fuel such as electricity, coal was in declining demand
the market was shrinking and coal was overproduced compared to demand
so coal mines shut down and coal miners lost their livelihoods
what problems did African American workers face in the 1920s?
-racial discrimination
-unemployment
where did the majority of African Americans workers live in the 1920s and why?
lived in southern states such as Mississippi due to the Slave trade
what dod the majority of African-Americans work as?
many worked on farms as labourers or as sharecroppers
how did the decline in demand and overproduction in the farming industry affect the African-Americans?
many African-Americans worked as labourers or sharecroppers on farms
-due to the decline in the farming industry, African-Americans were affected by problems such as unemployment
3/4 of the farmers who were made unemployed were African-American
how were the living situation of farmers?
-many African-Americans generally lived in poverty but their living situations worsened due to the decline of the farming industry. Due to the unemployment in the farming industry, many moved to cities but only found low paying jobs and some factories were even white only
what problems did Native Americans experience?
-loss of tradition
-forced onto land with poor soil
-poor education
-lower life expectancy
why did native Americans lose their traditional way of life?
-indigenous Americans lost their land to mining companies
-they were forced onto reservations
-lost their traditional life style
how much did the richest 5% earn in the 1925?
33% of all wealth
how much did the poorest 42% earn in 1925?
10% of all wealth
how much did 6 million of the poorest families earn?
less than $1000 a year which was under the poverty line
what were the benefits of the boom?
-cheaper goods
-growth of consumer goods
-expansion of industries
-more leisure time
-growth in stock market investment
who benefited the most from the boom?
-business owners
-middle class Americans
-investors
how did consumer credit boost sales?
Consumer credit enabled people to purchase items they couldn’t otherwise afford
-boosted sales
-increase demand so fuelled business growth
how did tariffs fuel business growth?
tariffs encouraged consumers to buy domestically produced goods as they were less expensive
how did variety of goods boost sales?
Technological advances, including the development of plastics like Bakelite and the widespread adoption of electricity, led to new consumer products such as refrigerators. These products were both affordable and diverse, which drove increased sales
the problems of unemployment in 1920 vs 1929
the same number of people (5%) stayed unemployed in 1920 vs 1929(peak of boom)
-the unemployed was made up of mainly USA’s immigrant population
what were the consequences of the boom?
-higher wages
-mass production(cheaper goods)
-more leisure time
-flourishing entertainment and culture
-increased inequality of wealth
what was the price of a woolworth share on the 3rd March 1929?
181 cents
what was the price of a Woolworth share on 3rd September 1929?
251 cents
how many people owned shared in 1920?
4 million
how many people owned shares by 1929?
20 million
