USA --> Flashcards on the factors of 1920s US Economic Boom:
Overview of the Economic Boom
What was the economic boom
A period of time when the economy improves quickly, people earn more, and the standard ofliving goes up
Factors of the Economic Boom
On what factors was the economic boom based? (6)
1) aftermath of World War I
2) introduction of assembly line production
3) expansion of the automobile industry
4) development of electricity
5) technological advancements
6) growth of entertainment.
World War I Impact
How did World War I contribute to the economic boom?
1) The US, minimally involved in WWI, kept its workforce and troops, profiting from selling weapons and goods.
2) Production demands and export rates soared, with industries like iron, coal, petrol, and wheat experiencing significant growth.
3) This created many jobs in America and lots of business people rich.
Assembly Line Innovation
Who introduced the assembly line, and how did it impact production?
Henry Ford
assembly line: enabled mass production at low costs
Initially used in automobiles, it soon expanded to other industries, leading to increased production, lower prices, and higher demand.
Automobile Industry Expansion
How did the expansion of the automobile industry contribute to the economic boom?
The growth of the automobile industry, fueled by the assembly line, turned cars from a privilege to a necessity
(In 1900 - only 4000 cars made / in 1929, 4.8 million)
High demand stimulated production in related industries like petrol and glass. This created many jobs in America and lots of business people rich.
Development of Electricity
What role did the development of electricity play in the economic boom?
The widespread availability of electricity, a cheap power source, fueled economic growth.
In 1920, only 35% of households had electricity - this
increased to 68% by 1929
Prices dropped but demand increased so greatly it created massive profits
Technological Developments
How did technological advancements impact the economy in the 1920s?
Mass production through the assembly line made appliances like refrigerators and radios common in households.
Average annual sales in the 1920s went beyond $7 billion, demonstrating the success of these technological developments. Everyone buying these machines created many jobs in America and lots of business people rich.
Entertainment Industry Growth
How did the entertainment industry contribute to the economic boom?
Newspapers, magazines, sports, and cinema gained popularity.
With Hollywood as the film capital, cinema became a mass production industry, and sports, especially baseball, became highly profitable.
Advertisement’s Role
How did advertising contribute to the economic boom?
Advertising for entertainment, technology, and other mass-produced goods became widespread.
Billboards, catchphrases, and radio advertising encouraged consumer spending, boosting sales and profits across multiple industries. This created many jobs in America and lots of business people rich.
