WHAT CAUSED THE BOOM

Question 1

WW1

Answer 1

1. WW1 caused government spending to increase
2. Unemployment dropped as men went to war and there were more jobs to fill, jobs also created in ammo industry
3. balance of payments improved due to large artillery exports to Europe
4. People spent more as employment was higher- consumer confidence

Question 2

GOVERNMENT

Answer 2

1. harding- Fordney McCumber act- high import tariffs to keep money in the USA
2. Coolidge- improved trade, wasted less government money. (laissez faire policy)
3. mellon- decreased tax and the debt, whilst creating higher spending, higher employment and invested more in business for growth

Question 3

MASS PRODUCTION/ CONSUMPTION

Answer 3

1. Ford- produced cars on an assembly line- 950 dollars to 290 dollars per car. made it affordable. a car was made every 10 seconds
2. Taylor, division of labour created- increased productivity which increases output
3. Barton- steel/ GM/ betty crocker advertising. invested to create a mass advertising market
4. They all therefore developed American sectors, increasing global competition

Question 4

LONG TERM EFFECTS

Answer 4

1. Carnegie- railroads built, steel industry (a major employer), steel for the US army
2. Edison- inventions like the light bulb, car batteries, phonograph, national grid
3. Morgan- financed steel company and corporations. large tax returns. invested largely- led to growth