The Boom Flashcards
Why was there a boom in the 1920s? (6)
WW1 Mass production Advertising Consumer society Hire purchase Shares
Why did WW1 cause a boom in america? (4)
USA stayed out of war for 1st 2 years
loaned money to the allies (= huge interest)
US firms sold weapons + made profits
there was less competition for American manufacturers
Why did mass production cause a boom in america? (3)
Production was cheaper + quicker - made way more profit
Created loads of jobs
Made goods cheaper - more people could buy them
Why did advertising cause a boom in america? (2)
Raised awareness
Increased demand
Why did the consumer society cause a boom in america? (2)
led to huge demand
Created jobs in the factories
Why did hire purchase cause a boom in america?
People could buy more - increased amount sold
Why did shares cause a boom in america? (3)
Shareholders made money which they could spend on goods
Increased investment in industry
More goods made
How many years did the USA stay out of WW1?
2 years
What kinds of advertising was used in the 1920s? (5)
Posters Billboards Newspapers Magazines Radio Etc.
What is hire purchase? (Phrase)
Buy now, pay later
What fraction of radios and cars were bought on credit?
8/10 radios
6/10 cars
What were the 3 republican policies?
Laissez faire
Tariffs
Low taxation
What is laissez faire?
Government shouldn’t interfere in people’s lives
How did laissez faire encourage a boom? (2)
Big businesses free to expand + make jobs
They could make profits and invest in industry
How did tariffs encourage a boom?
Made foreign goods more expensive so people bought more American goods
- helped industry to thrive
How did low taxation encourage a boom?
People had more money left to spend, which helped industrial growth
How many types of car did Ford produce?
1
What was Ford’s only car model? (2)
Model T
- mass produced with one engine size + one colour
How did Ford keep costs low? (2)
Only 1 type or car
Used assembly line + conveyer belt to speed up production
What was the price of the Ford Model T in 1911?
$800