The USA - Prosperity In The 1920's Flashcards
How were cities rebuilt?
Tall skyscrapers and major road building
Why was this decade a ‘boom time’?
There was low inflation, low unemployment and low interest rates
What is a consumer boom?
More people could afford items such as radios, refrigerators, washing machines, vacuum cleaners and telephones.
How did advertising become a big business?
Encouraged more spending and became a business and expanded to radio and film commercials.
What was hire purchase?
(Buying in instalments) introduced to make cars more available to average earners. It encouraged spending on luxury goods.
How did the republican government policy contribute to the boom?
Reduction of income tax, also promoted cheap credit and encouraged banks to lend money on easier terms.
What were the 3 industries that contributed to the boom?
Electric power
Motor cars
Chemical industries
Why did the stock market boom?
1.5 million Americans bought shares in the 1920’s before the prices began to rocket unreasonably in 1928, there were sensible reasons for buying them. People were investing in a real boom in production and consumption. Got bad when people bought shares in credit in hope of buying them at a profit.
Talk about the motor industry
Jobs of 1 in 12 workers linked to motor industry. Car production boosted steel, petrol, chemicals, glass and rubber industries. Cars became more affordable. Made by Ford, Chrysler and General Motors.
How did Ford use a different factory system?
Used an assembly line, divided manufacturing process among a group of workers, spaced along a moving belt. Made production much more efficient which allowed for a huge reduction in price. By 1929 1 in 5 Americans had a car.
