The role of UNIONS & WWI in the BOOM Flashcards
What did the Supreme Court rule in 1923?
What did this do to for consumers?
What did this do for businesses?
women / children minimum wages unconstitutional
decreased purchasing power for many potential consumers
decreased production costs for businesses
increased corporate profits
Argument why the decline in purchasing power due to lack of minimum wage for children / women was not disastrous for population;
availability of cheap credit
meant consumerism was still ongoing - but an increasing proportion of the population was going into debt to finance this
What organisation was becoming increasingly redundant due to lack of regulation?
Federal Trade Commission
What happened to the rights of unions over the 1920s?
- lost rights for picketing (enforcing strike action)
- yellow dog clauses
- federal courts could issue injunctions to strikes
- would be liable for losses made during strike action
What happened to union membership over the 1920s? What does this reflect?
Decreased form 4million to 3million
Decreasing power of unions
Increased need for job security
What was new industry’s response to unions?
Give an example
increasingly anti-union
often enforced yellow dog clauses
e.g Ford did not accept unions until forced to be Supreme Court
Reducing the power of unions was advantageous to business, what did this encourage? What policy also did this?
To what extent?
Encouraged expansion
as did reduced taxes
but not to scale of full employment
The declining power of unions significantly exacerbated what during the 1920s; x2
- unequal distribution of wealth
- increasing dependency on credit
Evaluate the role of the government in encouraging the boom in terms of unions and businesses
Government action allowed for business prosperity
but if anything weakened sustainable prosperity for the everyday worker
How many were drafted into WWI?
What was accumulated during WWI and why?
4million
Savings accumulated due to lack of domestic consumer goods on the market
What did WWI stimulate in terms of tech developments?
Give an example
Catalysed expansion of industrial infrastructure
e.g Ford started producing aeroplanes
20,000 annually by the mid-1920s
What increased consumers confidence in relation to foreign relations during the 1920s?
“Independent internationalism”
period of non-involvement
What was set up in 1922?
What did this demand from Britain?
How did this incentivise banks?
1922 : Debt Funding Commission
Demanded $4600milllion from Britain in 62years
US’s position as creditor nation Increased confidence of banks via anticipated loan repayments and interest
= increasingly willing to provide credit to US consumers
What did loan repayments mean for international trade and the position of European nations?
How was this exacerbated?
Loan repayments exacerbated unequal distribution of wealth on an international scale
Protectionism via F-M Tariff meant European countries unable to earn off of exports
= so increasingly unable to act as source of demand for US goods
Following WWI what type of position did the USA hold?
What did this create?
positon as economic hegemony and creditor nation
created an atmosphere of confidence
