Topic 1 (1920-29)Why Did The USA experience An Economic Boom In The 1920s? Flashcards
What aided the development of the advertising and marketing industries?
Technological advances of radio and cinema.
What was the first major commercial radio station?
KDKA in Pittsburgh, Pennsylvania.
How many commercial radio stations were there in 1929?
619 commercial radio stations.
What percentage of households possessed a radio by the mid-1930s?
75% of households.
What was a common feature in every town by 1929?
A picture theatre showing Hollywood films.
What contributed to the growth of car ownership?
New roads and advertisements on billboards.
Which seaside resort became a destination for New Yorkers?
Atlantic City, New Jersey.
What made National Parks more accessible?
The development of new roads.
What act made the government responsible for building roads?
The 1921 Federal Highways Act.
How much did the length of surfaced roads increase from 1920 to 1929?
From 350,000 miles to 662,000 miles.
What industry saw a boost due to the increase in road construction?
The construction industry.
What are some of the USA’s natural resources?
Coalfields in West Virginia and Kentucky, reserves of oil in Texas, Oklahoma, and California, and metals such as iron, copper, and lead are important for industrial production.
What does ‘spirit of enterprise’ refer to?
‘Spirit of enterprise’ refers to rugged individualism and the belief in the American Dream, where hard work and talent could lead to wealth.
Who were notable figures representing the American Dream?
Steel magnate Andrew Carnegie and Henry Ford exemplified the American Dream.
What significant development occurred in 1920s USA?
The development of the motor car was matched by a nationwide road system.
What role did European immigrants play in the USA’s economy?
Millions of European immigrants provided cheaper labor and hard work.
What innovation did Henry Ford introduce?
Henry Ford introduced the production line and division of labor, which increased productivity.
How did production time change for cars by 1913?
In 1913, it took 12.5 hours to produce one car, which was reduced to 2 hours and 40 minutes.
What was the most produced car during this time?
The most produced car was the Ford Model T, which was only available in black from 1914 to 1926.
Who conducted time and motion studies of production?
Frederick Taylor conducted time and motion studies of production.
What was the role of industrial corporations?
Industrial corporations bought up natural resources and controlled the entire manufacturing process and sales.
Who controlled multiple companies by 1929?
Samuel Insull controlled 111 separate but linked companies by 1929, with a combined value of $3 billion.
What percentage of the USA’s electricity supply industry was controlled by 16 companies in 1929?
By 1929, 16 companies controlled 90% of the USA’s electricity supply industry.
What was the impact of electrification?
Electrification led to the development of radios, vacuum cleaners, and toasters.
How many electrical appliances were there in 1912 and 1929?
In 1912, there were 2.4 million electrical appliances, which increased to 160 million by 1929, though they were mostly centered in towns and cities.
What was the main driving force behind the economic boom of the 1920s?
The motor car.
How many car registrations were there in 1920?
Eight million.
How many car registrations were there in 1929?
Nearly 28 million.
How many cars did Ford produce in 1920?
1.25 million cars.
How often did Ford produce a car in 1920?
One every sixty seconds.
Which companies were involved in car manufacture?
Ford, General Motors, and Chrysler.
What city became the world’s car manufacturing center?
Detroit.
How many workers were directly employed by the car industry?
375,000 workers.
How many workers did Ford’s River Rouge plant employ?
75,000 workers.
What percentage of the American manufacturing workforce was employed by the car industry by 1929?
Seven percent.
What percentage of all manufacturing wages did the car industry pay?
Nine percent.
What industries were stimulated by car manufacturing?
Steel, rubber, and glass industries were essential for car manufacture.
What was the effect of increased demand for cars?
It led to increased demand for materials like steel, rubber, and glass.
How did car manufacturing influence technological advances?
It stimulated advances in engineering and electrical industries.
What was the impact of the rise in car ownership?
It caused a rapid rise in the demand for petrol.
What industries emerged to serve motorists?
Petrol stations, motels, and garages emerged.
How did the demand for cars affect other industries?
The demand for cars stimulated the growth of other industries, including essential materials for manufacture and the oil industry.
What was the impact of increased car ownership?
Increased car ownership led to a rapid rise in the demand for petrol, which stimulated the oil industry and the emergence of petrol stations, motels, and garages.
What economic conditions characterized the 1920s in the USA?
The 1920s was characterized by low unemployment, low inflation, and a 13 percent rise in real wages between 1923 and 1929.
What was the purpose of hire-purchase schemes?
Hire-purchase schemes allowed consumers to buy goods by initially paying a small portion of the price and then paying off the rest in monthly instalments.
What percentage of cars were bought through hire-purchase schemes?
Over 75 percent of cars were bought through hire-purchase schemes.
How did consumer borrowing change from 1920 to 1929?
Consumer borrowing rose from just over $2 billion in 1920 to over $8 billion by 1929.
What belief stimulated consumer spending during the 1920s?
The belief that the economic boom of the 1920s would be never-ending stimulated consumer spending.
What historical downturns did the USA experience before the 1920s?
The USA suffered major downturns in economic activity in 1857, 1873, and 1893.
Who was Stuart Chase?
Stuart Chase was a co-founder of Consumers Research Inc., the first product-testing organization in the USA.
What did Stuart Chase identify as a major force in business prosperity?
Stuart Chase identified the motor car as the largest single force in business prosperity.
What was the dominant political party in the 1920s in the US?
The Republican Party dominated the political landscape, winning presidential elections in 1920, 1924, and 1928.
What was Calvin Coolidge’s famous claim regarding business?
Calvin Coolidge claimed that ‘the business of America is business.’
What economic policies did Republican governments implement to support big business?
They implemented laissez-faire economic policies aimed at lowering taxes and reducing government regulation.
What was the Fordney-McCumber Tariff?
The Fordney-McCumber Tariff, passed in 1922, placed taxes on foreign goods to protect American industries.
What impact did the Fordney-McCumber Tariff have on American industries?
It increased profits for American chemical, dye, steel, and aluminum industries but did not address agricultural overproduction.
Who was Andrew Mellon and what was his tax policy?
Andrew Mellon was the Secretary to the Treasury from 1921 to 1932, and he adopted a low-tax policy, lowering taxes on the rich from 50% to 20%.
What was the outcome of Mellon’s tax reductions?
Mellon handed out $3.5 billion in tax reductions and helped balance the federal budget during his time in office.
How did the Federal Trade Commission affect business regulations?
The Federal Trade Commission and Republican-run state governments reduced regulations, often ignoring price-fixing and labor issues.
What was the American Plan?
The American Plan was a slogan for reducing union power, leading to no-strike and no-union agreements forced on workers.
What happened to union membership by 1929?
Union membership declined by nearly a million due to anti-union policies and actions by the Republican government.
What significant actions did the US Supreme Court take regarding unions between 1921 and 1925?
The Supreme Court made four significant anti-union decisions that restricted union power.
