The Roaring 20's/Great Depression Flashcards
Roaring 20s
Economic prosperity, liberation and rebellion against traditional values. Country people thought values were under threat.
Impact of the roaring 20s
Entertainment industry grew with film developed, cars helped cities grow and opened suburbs, more infrastructure built. New industries and methods of production. More mass advertising.
What products did the roaring 20s bring
Most people owned a radio, jazz music became obsession, new dances, flapper (woman wore short dresses, makeup and smoked in public), telephones, fridges, cars.
Republican policies of the 1920s
Introduced laissez-faire, tariffs, low taxation and trusts
Republican policy, economic impacts
Aimed to increase economic growth and activity. There was still income inequality and farmers struggled to repay loans due to falling crop prices from high supply.
Republican policy, impact on society
Low tax bought benefits to ordinary people and even more to the wealthy. Government to interfere as little as possible in people’s lives.
Increases of car production
1919, 9 million then 1929, 26 million
Increase of radio production
1920, 60,000 and then in 1929, 10 million
Increase of telephones production
1915, 10 million and then 1930, 20 million
Increase of fridge production
1921, for every one there were 167 in 1929
Laissez-faire
Government should interfere as little as possible in lives of people to let businesses grow.
Tariffs
Import tariffs made it expensive to import foreign goods. Protected businesses against foreign competition and allow them to grow more rapidly.
Low taxation
Keep taxation as low as possible which bought benefits to ordinary working people but even more to the very wealthy.
Causes of the Great depression, overproduction
Demand for consumer items fell leading to high supply and low demand.
Causes of the Great depression, wealth distribution
Unequal distribution of wealth has 60% people living below the poverty line and didn’t experience benefit of the boom.
Causes of the Great depression, corruption
Many illegally bought and sold shares, trading inside information.
Causes of the Great depression, tariffs
As US tariffed international imports, Europe retaliated and did the same on US imports. Made it hard for US companies to expand and stay profitable.
Causes of the Great depression, speculation
People gambled on stock exchange and borrowed money. Lost money when companies invested in collapsed, couldn’t pay loans costing bank.
Causes of the Great depression, laissez-faire policies
Lack of regulation meant small banks opened and couldn’t stay profitable and suddenly closed. People lost their savings.
Causes of the Great depression, panic
When banks began closing, people panicked and sold shared to not lose money. Caused prices to drop causing more people to sell shares.
Impacts of the Great Depression on the rich
Large speculators ruined, rich lost the most as they had invested the most. Vanderbilt lost $40 m, Rockefeller lost 80% but had $40 m left.
Impacts of the Great Depression on the banks
Many unable to pay back loans so bank and insurance companies went bankrupt. 1929, 659 banks failed, 1930, 1,352 went bankrupt.
Impacts of the Great Depression on European banks
1931 had problems in European banks, knock-on effect in USA causing panic.
Impacts of the Great Depression on people
Americans lost confidence and kept money instead of buying goods or shares. Many couldn’t afford consumer goods.
Impacts of the Great Depression on businesses
Cut production and laid off more workers. Wages reduced and between 1928-1933 both industrial and farm production fell by 40% and wages by 60%.
Impacts of the Great Depression on farm
Prices fell so low that cost of transporting animals was more than price of animals themselves.
Impacts of the Great Depression on USA’s international trade
Trade fell from $10 billion in 1929 to $3 billion in 1932.
What did the government do in regards to tax
President cut taxes to stimulate people to buy more goods. By mid 1931 production was rising again.
What did the government do to save banks
Set up Reconstruction Finance Company to try stop banks going bankrupt.
What did the government do with laws
In 1932 Hoover blocked a law that would’ve allowed Congress to provide $2.1 billion to create jobs.
