Paper 2 Opportunity and Inequality Flashcards
What was the effect of WW1 on ecconomy in 1920s
improved technology and government policy helped economic boom
what was the effect of the boom on society
for some wages and confidence increased but not all benefited
During WW1 some companies became rich why
they exported food and weapons to Europe
what happened after WW1 and why
a depression because business contracts returned to peace time production
what happened to the economy by 1923 and why
it boomed again because of republican president policies
what does laissez faire mean
leave something alone
what was republican policy in 1920s (3)
1 laissez fair approach to economy- leave business alone to make as much money as possible
2 introduce tarrifs on imports encouraging people to buy American and boost industry
3 wages stay high taxs low so workers had more money to spend on American products increasing sales and boosting profits
In 20s economy grew because of increased sales of consumer goods what 4 factors drove this
1 mass production - goods made on large scale in purpose built factories using machines not skilled workers - made cheaper
2 tariffs made overseas versions of products more expensive so they bought American
3 Advertising - new techniques encouraged people to spend
4 credit- pay loans in instalments and didn’t have to have money at the time of purchase
what did some do so that they could buy shares and why
they invested in the stock exchange and took loans out to buy shares hoping they would increase in value and they could sell them for a profit
Give a case study of a company n the 20s that contributed to the boom
Ford Car company
1913 Fords first production line, each worker did 2 jobs on the line - form of mass production
1927 one car made every 10 secs
cost fell so most could afford one
by late 20s car industry in US were the biggest employer thousands in factories and associated industries
who didn’t share in the wealth (3)
farmers struggled as demand for food fell
workers in old industries lost their jobs as technology replaced them
African Americans and immigrant groups were most likely to be unemployed
Identify 7 features of economic boom
government
confidence
old industries
ford
mass production
hire purchase
advertising
