The Boom Flashcards
What was the American boom?
A period of economic prosperity making America the richest country in the 1920s
How did American industry benefit from the boom?
Overall out put doubled in the 1920s
Cheaper silk substitute (rayon) in 1930 meant 300 million pairs of stockings sold to around 100 million women
How did home life in America benefit from the boom?
The first male catalogue was introduced in 1927
In 1929, almost all urban homes had electricity compared to 1918 when electricity was rare
Phones, fridges and radios increased
How was transport affected by the boom?
Federal Road Act of 1916 caused intense road building
In 1920s extent of roads doubled
By 1929 there were 3.5 million trucks
How were cities affected by the boom?
In 1920, more skyscrapers were built than ever before
What does LACKPANTS explain?
Why there was a boom in the 1920s
What does LACKPANTS stand for?
L aissez faire A ssembly line C redit K nowledge P osition of America A dvertisment N ew consumer goods T arriffs S hare confidence
What is laissez faire and how did it help cause the boom?
Where republicans believed the government should do as little as possible to interfere in people’s everyday lives allowing businessmen to be free to make profits
What is the assembly line and how did it help cause the boom?
Created by Henry Ford, were manufacturers could increase the speed and production of goods and make them cheaper in where the product being assembled passes through an arrangement of workers, machines and equipment one after the other until complete
What is credit and how did it help cause the boom?
Were catalogues were given to each home and hire purchase allowed people to buy goods with a small deposit and pay it off in weekly instalments allowing more people to afford expensive items
What is knowledge and how did it help cause the boom?
Where in the 1920s, new uses of technology allowed radios and televisions to produce adverts to get consumers to buy their goods and more people made their own goods in the country creating more jobs and boosting the economy as purchasing outside america was made expensive by the republicans
What was the position of America and how did it help cause the boom?
Despite 100 000 Americans died in WW1, the country didn’t face physical and financial damage like Europe and instead helped the war effort by selling food and weapons to the allies creating many jobs , businesses and boosting industry
What was advertisement and how did it help cause the boom?
Where big industries used sales and marketing techniques through posters, radio adverts and travelling salesmen to get Americans to buy goods they never knew they needed
What was new consumer goods and how did it help cause the boom?
Because by 1927, 70% of American homes had electricity so new products like washing machines, fridges, vacuums, radios and motor cars
What were tariffs and how did it help cause the boom?
Were the republicans wanted rich people to have as much money as possible so they could start more companies and create more jobs so they placed tariffs on imported goods so everyone bought American goods
What was share confidence and how did it help cause the boom?
As people were willing and confident to buy goods and invest in companies. As taxes were low, people and companies had more money to invest
What was the stock market?
Where people bought and shard companies
What does a company need to run?
Money
What is a dividend?
An amount of money that someone would receive at the end if they year from a company they had invested in. It is a share of a company’s profits for that year
What is buying on the margin?
When people would take out a bank loan, buy shares, then pay back the loan with the profits they made from selling their shares at a higher price than they bought them
What is speculation?
When people guessed which companies would do well and invest in them at their own risk
What is a share?
An individual ‘part’ of a company that was owned by someone who wanted to invest in it and they allowed companies to be set up and expanded from their money
What is an investor?
Someone who buys into a business by purchasing shares in it giving the company more money to expand
What is a shareholder?
Someone who bought shares in a company and ‘held’ them within their company
How many cars did Henry Ford make per day?
100
What was the model T Ford?
One of the first cars built using mass production methods which was cheap to buy and run
How many ModelT Fords were sold in the first year
10,000 in 1908
What happened to the Model T by the mid 1920s?
One out of every two cars sold was a model T Ford
How did the assembly line make the Model T cheaper?
Dropped the car form $850 to $300
